Universal Credit
The question
To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of introducing a protected minimum floor for Universal Credit.
Answered by Sir Stephen Timms
The Government recognises the importance of the social security safety net and the role Universal Credit has to play in tackling poverty and making work pay. That is why a Fair Repayment Rate will be introduced from April 2025, reducing the overall cap on Universal Credit (UC) deductions from 25% to 15%. This means approximately 1.2 million of the poorest families will benefit by an average of £420 a year.
At this time, the Government have no plans to make an assessment of the potential merits of introducing a protected minimum floor for Universal Credit at this time.
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