Universal Credit: Part-time Employment

(asked on 10th October 2025) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the effectiveness of the Universal Credit taper in incentivising part-time work.


Answered by
Stephen Timms Portrait
Stephen Timms
Minister of State (Department for Work and Pensions)
This question was answered on 22nd October 2025

The taper rate aims to make customers financially better off in work by ensuring that their Universal Credit award is reduced by less than their earned income.

Universal Credit has a single taper rate of 55% and some customers will also benefit from a work allowance which is the amount someone can earn before their Universal Credit award starts to reduce.

Once a customer is earning more than their work allowance (if applicable), their Universal Credit starts to be reduced at a consistent rate.

Reticulating Splines