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<p>The Secretary of State is currently conducting his statutory annual review of State
Pensions and benefit rates. The outcome of that review will be announced in due course.</p><p>
</p><p>Universal Credit is designed to make work pay, so not all of a person's net
earnings are deducted from their Universal Credit. Claimants with children and/or
limited capability for work will also benefit from a work allowance.</p><p> </p><p>A
work allowance is an amount of earnings a Universal Credit household can earn (including
employed and self-employed earnings) before the single taper rate of 55 per cent is
applied to their earnings and their Universal Credit begins to be reduced. In simple
terms, this means that 45 pence in every pound earned would be kept: claimants are
£45 better off for every extra £100 of net earnings.</p><p> </p><p>If a single claimant
(or either claimant in a couple) have responsibility for a child or qualifying young
person, and/or have limited capability for work, they will be eligible for a work
allowance.</p>
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