Thank you for contacting me about Universal Credit (UC) and inflation.
I understand the anxiety that rising prices and inflation are causing for constituents, especially those on UC.
I am therefore pleased that the Chancellor announced during his Autumn Statement 2022 that benefits will increase by 10.1 per cent for 2023/24, in line with inflation. This means that ten million households in receipt of working-age and disability benefits will see an increase in their benefit payments. The average uplift for households receiving UC will be around £600.
The Government has made permanent changes to Universal Credit to make it more generous, including reducing the UC taper rate from 63 per cent to 55 per cent in the Autumn Statement 2021. Combined with increasing work allowances in UC by £500 a year, this is worth £1,000 a year to a full-time worker.
As announced at the 2022 Spring Statement, the National Insurance threshold has now risen from £9,568 to £12,570, representing a £330 tax cut for 30 million workers. This delivers on the commitment in the 2019 manifesto and represents a £6 billion tax cut for 30 million workers.
The Government is also determined to boost employment and wages. I strongly welcome the Government's Plan for Jobs. This includes the three-year Restart Scheme which provides 12 months of intensive employment support to UC and JSA IB claimants who are unemployed for at least nine months, and Job Entry Targeted Support.
I know that Ministers are acutely aware of the challenge that the cost of living presents to households. I will be sure to continue to monitor the situation closely.