Proposal would allow working people to keep more of their earnings, at a cost of £1bn to the Treasury
Ministers are examining a £1bn-a-year increase in benefit payments to cushion the impact of the imminent £6bn-a-year cut in universal credit.
After growing pressure to reverse the £20-a-week cut, the Treasury is looking at a proposal from the Department for Work and Pensions (DWP) to let working people who receive the benefit keep more of their earnings, it is understood.