Andy Burnham says budget U-turn on Universal Credit would be a ‘rabbit’ out of Chancellor’s hat

The Mayor of Greater Manchester Andy Burnham is holding out hope for a U-turn on Universal Credit in today’s budget.

Mr Burnham told BBC Radio 4’ Today programme this morning: “On the rabbit out of the hat I am hearing they are about to U-turn on Universal Credit… and I hope that is the rabbit that is in his hat today.

“If he is going to do that, it is the right thing to do. This pandemic is not over, people are still feeling its effects – but credit to those who have campaigned – particularly on the Labour frontbench who have been consistent on this point.”

Former Housing Secretary Robert Jenrick told LBC radio this morning that decreasing the taper rate for Universal Credit would be a “very sensible step” and an “attractive option” ahead of the Budget.

The taper rate sets the amount of benefits a claimant loses for each pound they earn. The rate is currently set at 63%, meaning that for every pound a claimant earns over their work allowance, if you are eligible for one, their Universal Credit is reduced by 63 pence.

A reduction in taper rates could be seen as a partial remedy for the controversial cut to the Universal Credit uplift.

The £20 top-up to weekly Universal Credit payments cut earlier this month was intended as a temporary measure to help people on low incomes during the pandemic.

Anti-poverty charity the Joseph Rowntree Foundation has said the cut makes a “mockery” of the government’s “mission to level up”, and has estimated that it will leave 5.5 million families across the United Kingdom are £1,040-a-year worse off.

The benefit is currently claimed by over 5.8 million people in England, Scotland and Wales, almost 40% of whom are in employment.