Spending Review 2021: LGA responds to Universal Credit taper rate change

Commenting on the decision to adjust the taper rate of Universal Credit in today’s Spending Review, Cllr Shaun Davies, Chair of the Local Government Association’s Resources Board said:

“The adjustment of the taper rate of Universal Credit and the increase in the work allowance announced today is an important part of supporting recovery from the pandemic, which should help to mitigate some but not all of the impact of the ending of the Universal Credit uplift.

“This primarily benefits working households and so other mitigations, including the Household Support Fund, will continue to be vital to ensure those currently unable to work or facing additional pressures get the support they need, whilst also helping those who are able to work back into the workplace.

“The Household Support Fund comes to an end in March. A more sustainable approach is needed alongside the mainstream benefits system to ensure those who cannot work are still supported. We will continue to work with government and partners on how best to enable councils to provide integrated, preventative support to low-income households, linking financial support with key services including housing, employment and health.”