Section: Welfare Benefits

Budget changes to Universal Credit help some but leave 3.6 million worse off

Posted 08.11.21
Resolution Foundation: Further reading

The impact of changes to Universal Credit (UC) announced in the Budget last week will leave 1.3 million families better off than before the withdrawal of the £20 a week boost to UC last month and make 330,000 more families eligible for support. However, 3.6 million families will remain worse off - according to new research published by the Resolution Foundation.

The research examines how the £500 per year increase in work allowances and taper rate reduction from 63% to 55% will affect nearly five million families forecast to be claiming UC next year.

These changes come after the £20 per week boost to UC, brought in to protect low-income families from the negative financial impacts of the pandemic, expired at the beginning of October.

The report finds that the changes will benefit 1.3 million higher-earning families in receipt of UC.

But for 3.6 million families (composed of all those in non-working UC families, and those in work but on lower incomes) these changes will not compensate for the removal of the UC boost.

More than half of families on Universal Credit will still be worse off by over £1,000 a year.


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Reporting on November 2021

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