UNIVERSAL Credit claimants have been handed a £1,000 per year cash boost as part of the Chancellor’s Autumn Budget announcement.

Rishi Sunak announce a change to the Department For Work and Pensions rules in Wednesday’s announcement  in Commons.

People who work and claim the benefit will be better off as part of a £2.2 billion tax cut to help low-paid workers and “reward work”.

The rule change means the taper rate will be cut by 8 per cent bringing it down from 63 per cent to 55 per cent as Mr Sunak hit out at what he described as a "hidden tax on work".

What Rishi Sunak has said about change to Universal Credit

He said: “The Universal Credit taper withdraws support as people work more hours. The rate is currently 63 per cent, so for every extra £1 someone earns, their Universal Credit is reduced by 63p.

“Let us be in no doubt: this is a tax on work – and a high rate of tax at that.”

He added: “To make sure work pays, and help some of the lowest income families in the country keep more of their hard-earned money, I have decided to cut this rate, not by one per cent, not by two per cent – but by eight per cent.”

Mr Sunak said the tax cut would be worth more than £2 billion and would be introduced by no later than December 1.

The change will not impact claimants who are not working or change the £20-a-week reduction following Covid.

The changes mean that nearly two million families will keep on average an extra £1,000 a year, he said.

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