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Welfare reforms: Government lays Universal Credit changes in Parliament
Summary
The UK Government has laid legislation in Parliament to change elements of Universal Credit, with reforms due to take effect in April; it also announced over £3.5 billion of employment support funding by the end of the decade.
Content
The Government has laid legislation in Parliament to amend parts of Universal Credit and says the changes are intended to rebalance the benefits system and support more people into work. The reforms are reported to introduce a lower health element rate for new claimants while preserving the higher rate for people with the most severe or lifelong conditions and existing health claimants. Officials announced funding for personalised employment support alongside the changes. The measures are scheduled to come into force in April.
Key points:
- Legislation to amend Universal Credit was laid in Parliament on 9 February.
- New claimants will be moved to a lower Universal Credit health element of £217.26 per month, compared with the higher rate of £429.80; those with the most severe, lifelong conditions, those nearing end of life, and existing health claimants will continue to receive the higher rate.
- The Government announced more than £3.5 billion of investment in employment support by the end of the decade, including dedicated advisers and programmes described as Pathways to Work, WorkWell and Connect to Work.
- The reforms are scheduled to take effect in April and the Government states they are expected to reduce costs by about £950 million by 2030/31.
Summary:
The Government says the package is designed to change incentives in the welfare system and offer tailored help to people with health-related barriers to work while increasing the standard Universal Credit allowance for many households. Legislation has been laid in Parliament and the changes are scheduled to come into force in April. Undetermined at this time.
