Sunak UK changes compensation system to make work pay



UK Finance Minister Rishi Sunak said on Wednesday he would change the benefit system to encourage more people to work, reducing the “declining rate” for applicants for universal credit, a benefit for the unemployed and low-paid people. The graduated rate is the amount of universal credit that people lose as they increase their income from work. Sunak said he would reduce the rate from 63% to 55%.

“Almost 2 million families will keep, on average, an additional 1,000 pounds a year,” Sunak told parliament during his budget speech. “We are going to introduce this in a few weeks, and no later than December 1,” he said. The rate change comes after Sunak halted a weekly 20 pound ($ 27.50) increase in universal credit that was introduced at the height of the pandemic, a move that affected 4.4 million households in from mid-October.

Torsten Bell, director of the Resolution Foundation think-tank, said a gradual new level would improve the welfare system, but added: “It better helps universal credit applicants – the poorest (who don’t work. usually not) offset the 20 pound cut. “($ 1 = 0.7272 pounds)

(This story was not edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


Leave A Reply

Your email address will not be published.