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<p>The impact of Universal Credit cannot be considered in isolation. Tackling child
poverty and disadvantage is a priority for this government and Universal Credit is
a key component of a broader strategy to move Britain to a higher wage, lower welfare
and lower tax society. This strategy includes increasing the personal tax allowance
and introducing the national living wage.</p><p>In line with this strategy, Universal
Credit is designed to strengthen incentives for parents to move into and progress
in work, and it is working. Universal Credit claimants move into work faster and spend
more time looking for work.</p><p>In addition, Universal Credit provides improved
support for childcare for parents, enabling them to reclaim up to 85% of their eligible
childcare costs, which is expected to help 500,000 additional families at a cost of
around £350m per year.</p><p>At the Budget, the Chancellor announced a number of further
improvements to Universal Credit which will help ensure that claimants are supported
until they receive their first monthly Universal Credit payment.</p>
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