Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make it her policy to enable people who receive bonuses from work to not have their Universal Credit deducted as a result.

A Universal Credit award is calculated on the basis of the set benefit rate against money coming in to ensure fairness of treatment for all claimants. This includes money they have earned and means as earnings increase Universal Credit is gradually reduced. This is a long-standing principle of means-tested benefits.

Bonuses are earnings and are treated in the same way as any other earnings. This is already true for tax and other purposes, regardless of whether or not an individual is claiming a benefit. All earnings, above any applicable work allowance, are subject to the 55% taper and the Universal Credit award is calculated on that basis.