| answer text |
<p>The taper is the rate at which Universal Credit is reduced to take account of earnings.
It is specifically for in work claimants and linked to earnings to incentivise work,
and those in work to earn more. Universal Credit has a single taper of 63 per cent
so payments reduce in a transparent and predictable way as earnings increase. Universal
Credit is a means tested benefit, and income other than earnings, such as pensions,
is taken fully into account in the assessment of Universal Credit. This is consistent
with how legacy means tested benefits such as Employment and Support Allowance, Jobseeker’s
Allowance and Income Support treat pension income. Therefore it would not be consistent
to extend the earnings taper to pensions income and doing so would also undermine
the incentives to work for people of working age.</p>
|
 |
