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<p>This Government is doing whatever it can to ensure that individuals, families and
businesses are supported during the Covid-19 outbreak.</p><p> </p><p>The Government
recognises that Tax Credits were introduced in the early 2000s and no longer fully
reflect the world of work for many people. That is one of the reasons why we are introducing
Universal Credit. Universal Credit replaces Tax Credits and several other legacy benefits,
to provide a single system of means-tested support for working age people. Universal
Credit is assessed and paid monthly and is based on claimants’ actual earnings in
the month, rather than their annual income. As HMRC and DWP are experiencing significant
increased demand, the Government has chosen to prioritise the safety and stability
of the benefits system overall. That is why we have introduced measures that can be
operationalised as quickly and safely as possible in order to provide support to those
who need it most.</p><p> </p><p>Suspending the income disregard in Working Tax Credit
(WTC) would not benefit claimants on the lowest incomes who are already in receipt
of the maximum support available through WTC.</p><p> </p><p>This Government has taken
additional steps to support those affected by Covid-19 and has announced a wide-ranging
package of measures to support individuals, families and businesses affected by Covid-19.
These measures include:</p><p> </p><ul><li>Making Statutory Sick Pay (SSP) available
for individuals diagnosed with Covid-19 or those unable to work because they are self-isolating
in line with Government guidance. This is in addition to the change announced by the
Prime Minister that SSP will be payable from day 1 instead of day 4 for affected individuals.</li><li>Increasing
the standard allowance in Universal Credit and the basic element of Working Tax Credit
by up to £20 per week</li><li>A further temporary relaxation of earnings rules for
self-employed Universal Credit claimants</li><li>Increasing the Local Housing Allowance
for Universal Credit and Housing Benefit claimants to the 30<sup>th</sup> percentile
of market rents.</li><li>Introducing the Coronavirus Job Retention Scheme to help
firms continue to keep people in employment. Businesses can put workers on temporary
leave and the Government will pay them cash grants to cover 80% of their wages up
to a cap of £2,500, providing they keep the worker employed.</li></ul><p> </p>
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