• Privacy policy
  • T&C’s
  • About Us
    • FAQ
    • Meet the Team
  • Contact us
  • Guest Content
TLE ONLINE SHOP!
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
  • JOBS
No Result
View All Result
The London Economic
SUPPORT THE LONDON ECONOMIC
NEWSLETTER
  • TLE
  • News
  • Politics
  • Business
  • Sport
  • Opinion
  • Elevenses
  • Entertainment
    • All Entertainment
    • Film
    • Lifestyle
      • Horoscopes
    • Lottery Results
      • Lotto
      • Thunderball
      • Set For Life
      • EuroMillions
  • Food
    • All Food
    • Recipes
  • Property
  • Travel
  • Tech/Auto
  • JOBS
No Result
View All Result
The London Economic
No Result
View All Result
Home Politics

Labour to set out plans for replacing Universal Credit

Jonathan Reynolds is due to make a speech setting out the party's plans for abolishing the current benefits set-up.

Jack Peat by Jack Peat
2021-08-23 08:05
in Politics
FacebookTwitterLinkedinEmailWhatsapp

A Labour government would replace Universal Credit with a welfare system that allows low-income earners on benefits to keep more of their take-home pay.

Shadow work and pensions secretary Jonathan Reynolds is due to make a speech at a social enterprise in Manchester on Monday setting out Labour’s plans for abolishing the current benefits set-up.

Universal Credit – introduced by former Conservative leader Sir Iain Duncan Smith when he was work and pensions secretary during the coalition government – was a reform that saw a number of benefits and tax credits, such as housing benefit and income-based jobseeker’s allowance, merged into a single entity and payment.

Labour said its replacement proposal will reduce the taper rate, allowing low-income workers to keep more of the money they earn.

Mr Reynolds is expected to say: “Improving our social security system to allow people to have jobs you can raise a family on is part of our new deal for working people.

“Reducing the taper rate, increasing the minimum wage immediately to £10 a hour, sick pay for everyone, protection against unfair dismissal, and the right to flexible working for all workers are all part of our plans to make work pay.”

Under the current system, Labour said that for every £1 earned by a claimant, 63p is deducted automatically from their Universal Credit payment by the taper rate.

The deduction is in addition to any income tax and national insurance that might be due, Opposition officials said.

According to the party’s research, a single parent working 30 hours a week loses £573 a month of their Universal Credit entitlement – the taper rate combined with national insurance and income tax making their effective marginal rate of tax 75%.

RelatedPosts

Sunak calls crisis meeting as Tory Party face war on two fronts

Johnson receives hefty book advance – but taxpayers will cover ex-PM’s legal bill

Matt Hancock’s I’m A Celebrity fee uploaded to MP’s register of financial interests

Jeremy Vine caller bemoans Tories – but says she’ll vote for them ‘just to keep Labour out’

In contrast, someone earning more than £150,000 a year only has an effective marginal rate of tax of 47%, according to Labour.

Shadow cabinet member Mr Reynolds will use his speech to appeal to Tory MPs to rebel over a proposal to cut the £20 per week uplift for Universal Credit recipients.

According to Department for Work and Pensions (DWP) figures, almost three and a half million children will be affected by the planned removal next month of the increase that was brought in to help people weather the impact of the coronavirus pandemic.

“This is an open invitation to those Conservatives who know this cut is wrong for our economy and the millions of families affected,” Mr Reynolds is preparing to say.

“Work with us, time is running out to do the right thing and cancel this cut.”

Related: Flashback: To when foreign secretaries DID resign over diplomatic failures

Tags: headline

Since you are here

Since you are here, we wanted to ask for your help.

Journalism in Britain is under threat. The government is becoming increasingly authoritarian and our media is run by a handful of billionaires, most of whom reside overseas and all of them have strong political allegiances and financial motivations.

Our mission is to hold the powerful to account. It is vital that free media is allowed to exist to expose hypocrisy, corruption, wrongdoing and abuse of power. But we can't do it without you.

If you can afford to contribute a small donation to the site it will help us to continue our work in the best interests of the public. We only ask you to donate what you can afford, with an option to cancel your subscription at any point.

To donate or subscribe to The London Economic, click here.

The TLE shop is also now open, with all profits going to supporting our work.

The shop can be found here.

You can also SUBSCRIBE TO OUR NEWSLETTER .

Subscribe to our Newsletter

View our  Privacy Policy and Terms & Conditions

Trending on TLE

  • All
  • trending
Abdollah

‘Rescue us’: Afghan teacher begs UK to help him escape Taliban

CHOMSKY: “If Corbyn had been elected, Britain would be pursuing a much more sane course”

What If We Got Rid Of Prisons?

More from TLE

Pie shop in hot water after horrified vegans slam their hog roast as ‘offensive’

How will the World end?

Thousands of twitchers flock to village to catch glimpse of rare bird

Chancellor may have to rethink spending if economy slowdown continues – IFS

Hush Presents: Classics in the Courtyard – Restaurant/Film preview

Utilico Emerging lags rising global emerging index

Full list of the 331 Tory MPs who voted against weekly testing of NHS and care staff

Police investigating death of 51-year-old disabled woman release CCTV images

Special needs carer desperately tried to save London boy’s life after he was stabbed

Raunchy Topless Photos of Doctor Who

JOBS

FIND MORE JOBS

About Us

TheLondonEconomic.com – Open, accessible and accountable news, sport, culture and lifestyle.

Read more

Contact

Editorial enquiries, please contact: [email protected]

Commercial enquiries, please contact: [email protected]

Address

The London Economic Newspaper Limited t/a TLE
Company number 09221879
International House,
24 Holborn Viaduct,
London EC1A 2BN,
United Kingdom

SUPPORT

We do not charge or put articles behind a paywall. If you can, please show your appreciation for our free content by donating whatever you think is fair to help keep TLE growing and support real, independent, investigative journalism.

DONATE & SUPPORT

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.




No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Entertainment
  • Lifestyle
  • Food
  • Travel
  • JOBS
  • More…
    • Elevenses
    • Opinion
    • Property
    • Tech & Auto
  • About Us
    • Meet the Team
    • Privacy policy
  • Contact us

© 2019 thelondoneconomic.com - TLE, International House, 24 Holborn Viaduct, London EC1A 2BN. All Rights Reserved.