A government minister has wrongly claimed that removing the planned £20-per-week cut in Universal Credit payments would cost “many pennies” on income tax.
Chancellor Rishi Sunak is coming under intense pressure to abandon his plan to remove UC’s “uplift” introduced at the start of the coronavirus pandemic last year, with speculation that he would reduce its impact by lowering the “taper” rate. Soften can at which profit is withdrawn if workers earn more.
Transport Secretary Grant Shapps today defended the chancellor’s refusal – worth £1,040 a year for about 6 million claimants, in low-wage jobs, at a cost of around £6bn per year – arguing it would mean workers Inadmissible increase in income tax paid by.
Mr Shapps told BBC1’s Andrew Marr Show: “I think most people believe that if it’s brought on by the pandemic, it’s going to be over because we’re going to go back to work and in more normal times. go back.
“We can’t keep all these things in place otherwise you would have to put a lot of money on income tax to pay to run the policy.”