By james art Labor was considering reducing the cap on deductions that can be taken from benefit payments by up to £420 a year. If continued, it could benefit 1.2 million households across the country, including 700,000 families with children.
The new fair payout rate, proposed by Work and Pensions Secretary Liz Kendall, could come into force in April 2025 and cap deductions at 15 per cent instead of the current 25 per cent.
This is money the government can take from Universal Credit claimants’ allowance to help them pay their debts.
These deductions can cover a range of debts, including benefit advances, historical child tax credit overpayments, rent and council tax arrears.
They are deducted from the claimant’s standard Universal Credit allowance each month until the debt is paid off, but many complain that it puts vulnerable people in serious trouble.
While this may take longer to pay off debts, it could be a lifeline for some of the poorest households already struggling with rising costs.
When will the 2024 Autumn Budget take place?
The Autumn Budget 2024 will take place on Wednesday 30 October shortly after 12.30pm. This is expected to last about an hour.
The last budget was held under the previous government and was held during the last parliament on 6 March 2024.
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How to watch the autumn budget
Those wishing to watch this year’s Autumn Budget can do so on the BBC website and BBC News. It will also be available for streaming on Parliament TV.
The Budget will be presented by Chancellor Rachel Reeves, with the first phase of the statement usually starting with an overview of the nation’s finances before setting out government proposals.