Pensions - Articles - Cut in universal credit taper gives low earners more money


Kate Smith, Head of Pensions at Aegon, comments: “We welcome the Government taking steps to put more money in the pockets of hard-working individuals and making work pay in what will no doubt be a welcome early Christmas present for many.

 From today, the cut in the universal credit taper from 63% to 55% along with a £500 increase in the Work Allowance means that 2 million of the UK’s lowest workers can keep up to an extra £1,000 of their earnings each year.

 “In his recent Budget, the Chancellor tackled the spectra of the rising cost of living head on, by incentivising individuals to stay in work and encouraging them to look ahead to build a more financially secure future. More money in people’s pockets enables more low-earners to get into the pension savings habit through their workplace pension scheme. Saving even a little regularly, and benefiting from an employer pension contribution can help to build long-term financial security.
 
 “From April, low-earners on the National Living Wage will also benefit from an increase in their hourly rate to £9.50 an hour more than double the increase in the cost of living. As a result of automatic enrolment, any rise in the minimum wage will also mean they benefit from increased pension contributions to their workplace pensions.”
  

Back to Index


Similar News to this Story

Only half believe State Pension will exist when they retire
State pension set to rise by 4.8% in April but confidence in the State Pension remains low. A third (33%) of Brits expect State Pension age to reach a
Comments on Collective Defined Contribution regulations
TPT retirement Solutions, Barnett Waddingham, LawDebenture and Hymans Robertson comment comment on the Government green-lighting Collective Defined Co
Corporate flexibility is priority for DB Scheme sponsors
Support for surplus sharing has soared from 61% to 85% in just one year. 37% of sponsors identified ensuring the pension scheme does not obstruct wide

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

Email
Password
 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS

WikiActuary

Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.