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<p>The government has always been clear that the £20 per week increase to Universal
Credit (UC) was a temporary measure to support households whose incomes and earnings
were affected by the economic shock of COVID-19.</p><p>There have been significant
positive developments in the public health and economic situation since the uplift
was first announced. Now that the economy has reopened, the government is focusing
on supporting people to move into and progress in work.</p><p>To continue to boost
employment, wages and living standards, the government is continuing or enhancing
the most successful Plan for Jobs schemes and introducing a new package of measures
– taking the total DWP spend on labour market support to more than £6 billion over
the next three years. This includes investing over £900m each year on work coaches,
who will provide effective support to help job seekers on Universal Credit move into
work and, for the first time ever, help people progress once in work, and funding
for the Kickstart scheme, which has so far supported over 112,000 young people into
Kickstart jobs.</p><p> </p><p>The government has also taken decisive action to make
work pay by cutting the Universal Credit taper rate from 63p to 55p, and increasing
Universal Credit work allowances by £500 a year. This is effectively a tax cut for
the lowest paid in society worth around £2.2bn in 2022-23 and strengthens incentives
to move into and progress in work. 1.9m households will keep, on average, around an
extra £1000 on an annual basis.</p>
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