MORE than a million Brits will have extra cash in their bank accounts by Christmas thanks to the £1,000 a year Universal Credit boost.
Many families will start receiving the new higher payments in time for the festive season after minister fast-tracked the rollout of the new scheme.
The increased payments started hitting bank accounts last week, as confirmed by this newspaper.
It comes after The Sun’s campaign to Make Universal Credit Work and will come as a relief to hard-pressed workers.
It means that more than half of all those eligible for the boosted payments will receive them in time for the Christmas holidays.
Today the financial secretary to the Treasury, Lucy Frazer, confirmed the move to the Commons.
Tory MP Stephen Metcalfe asked her to “confirm the £1,000 a year tax cut delivered through changes to the UC taper rate will begin to be seen in people’s bank accounts this side of Christmas”.
To which she replied: “Mr Speaker, yes.”
Chancellor Rishi Sunak said he’s “insanely proud” of the move to bolster the incomes of millions of low earning families.
He said: “We believe fundamentally in the power and ability of work to transform people’s lives.
“We want to make sure people have great jobs, we want to make sure those jobs are well paid
“The cut in the Universal Credit taper rate is going to ensure a £2.2bn tax cut for those on the lowest incomes. We are insanely proud of that.”
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He announced during last month’s Budget that the harsh taper rate is being slashed to provide a pay boost to 2m people.
The work allowance has also been boosted by £500.
Earlier this month Brits received confirmation of their benefits boost in their usual monthly statements.
Half a million people started getting the extra cash last week, thanks to cutting the taper rate down by eight pence a pound.
And more than half a million more will begin to get their boosted payments over the next fortnight.
Last week, DWP boss Therese Coffey hailed The Sun’s Make Universal Credit Work campaign, as working households get to keep more of what they earn.
But millions on Universal Credit were hit by a cut to benefits earlier this year, when the government withdrew the £20 a week uplift in support which was provided during covid.
Others, like reader Debi Wallbank, are struggling due to rising inflation pushing up the cost of energy and food bills.
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We’ve also revealed how Universal Credit and benefits are going up next year, as the DWP confirmed the how much payments will rise.
Those who are struggling may be able to apply for help – like an advance loan.
While millions on Universal Credit will also get a £10 one-off payment in time for the festive season.
Tax cut for millions of working Brits means a happier Christmas
By Thérèse Coffey, Secretary of State at the Department for Work and Pensions
MORE pounds in people’s pockets.
That’s our plan for almost two million working families who are on the lowest incomes and have their wages topped up by Universal Credit.
From today we are making changes which will provide an effective tax cut of £2.2 billion for the lowest paid, who will be better off to the tune of £1,000 a year on average.
For example, a single mother of two, renting in Darlington, working a full-time job on the National Living Wage, will see her take-home income increase by £1,200 on an annual basis.
Or a couple with two children, renting their home, where one partner works full time at the National Living Wage and the other works 16 hours a week earning the same, will be £1,800 per year better off.
We’re doing this by making two changes.
The first is a change to the taper rate which means people will keep more of their Universal Credit payment as they earn more in work.
The second is a £500 increase on the Work Allowance which means people can earn even more before their Universal Credit payment reduces.
The Sun, supported by its readers, has campaigned to ‘Make Universal Credit Work’ and these changes do just that.
It means hard working people aren’t penalised for taking on more hours – unlike the legacy system which takes away all benefits at once when people do 16 hours or more of paid work.
And because we have brought in these changes a week earlier than announced at the Budget, up to half a million more low income households will get extra cash before Christmas.
With people feeling a difference in their pockets from the 1st of December, this will come as a welcome boost ahead of the festive season.
Budget: Massive Universal Credit shake-up so 2million can keep an extra £1,000 a year
