Rishi Sunak insisted that he was a low tax Tory, despite record-breaking family burdens as the Universal Credit taper rate for two millions families is cut today.
While visiting Westminster’s community center to commemorate the Budget reduction, the Chancellor stated that “actions speak louder then words”.
Last month, Mr Sunak slashed 63p in the pound to 55p in the universal credit taper rate – the amount in benefits a claimant loses for each pound they earn above a set work allowance.
The changes mean that nearly two million families will keep on average an extra £1,000 a year.
Campaigners claim that while the changes will be beneficial to millions, it will also benefit approximately two million people who are either unemployed or unable work.
Rishi Sunak slashed 63p in the pound to 55p in the universal credit taper rate – the amount in benefits a claimant loses for each pound they earn above a set work allowance
Under the Universal Credit cut, a single mother of two, renting in Darlington, working a full-time job on the National Living Wage, will see her take-home income increase by £1,200 on an annual basis
According to Mr Sunak, actions speak louder that words. That’s why the announcement is so important.
“This policy will be in effect before Christmas, which is crucial because I can say what I want. You should judge me on how I’m doing it.
Meanwhile, a couple with two children, renting their home with one partner working full time and the other works 16 hours a week, will be £1,800 per year better off.
The move was intended to soften the blow of the withdrawal of the £20-a-week uplift which was introduced during the pandemic.
But campaigners claim that this change doesn’t compensate or assist those not working.
Katie Schmuecker, Deputy Director of Policy & Partnerships at Joseph Rowntree Foundation said: ‘This is a tale of two Budgets for families on low incomes.
“For workers, the changes to the taper and work allowance along with the increase in the National Living Wage are extremely positive. They allow low-paid workers more of what they earn.
“But, the truth is that these changes will not be of benefit to millions who cannot work or are looking for work.
Mr Sunak also spoke on the current economy, saying there is ‘lots to be positive about’ and that unemployment has been decreasing in the last eight to nine months despite disruption caused by the Covid pandemic.
The comments were made by the Chancellor after he was awarded the Politician Of the Year award from the Spectator magazine – which is edited once again by the Prime Minister.
Mr Sunak speaks on stage as he receives the Politician of the year award at the Rosewood Hotel in London’s West End
He was one of a number of MPs representing all political parties who attended the Rosewood Hotel, London’s West End. This came at a time when the relationship between No10’s occupant and No11’s Mr Sunak is the topic of much debate amid reports that their relationship may have soured.
The Times reported Mr Sunak becoming more frustrated by No. 10’s ‘chaotic operation’.
The newspaper claimed that Liam Booth Smith was the chief of staff at the Chancellor and was being held responsible for telling Mr Johnson there was a lot of concern about the building.
According to the official spokesperson for Prime Minister David Cameron, teams from No 10 and 11 where the Chancellor is situated, are ‘continuing to work very well together at all levels.