||<p>The £1,000 increase to the Universal Credit (UC) work allowance, announced in Budget
2018, will increase the amount that 2.4 million households can earn before their UC
begins to be withdrawn. This change will enable working parents and people with disabilities
on Universal Credit to keep over £630 extra income each year. The Budget 2018 work
allowance change increased government support for UC by £1.7bn per year by 2023-24.
No assessment has been made of the cost of a further £1,000 increase in the work allowances
over and above those which were increased in Budget 2018.</p><p> </p><p>HM Treasury’s
distributional analysis, published alongside Budget 2018, shows the cumulative effect
on household incomes of policies on welfare, tax, and public service spending measures.
Because different measures often interact with each other, this cumulative assessment
provides the best representation of the overall intended policy effect. This shows
that since this Chancellor and Prime Minister took office, their decisions have benefited
households throughout the income distribution, with the poorest households gaining
the most as a percentage of net income.</p>