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Universal Credit claimants will begin to be told how changes to the benefits system will bolster their incomes ahead of Christmas – but there are warnings that millions of families will still be worse off overall.

At his autumn budget last month, the Chancellor Rishi Sunak announced a reduction in the Universal Credit taper rate from 63% to 55%, along with a £500 per year increase to claimants’ work allowances.

Mr Sunak promised the alterations would be introduced no later than 1 December.

But the government has now hailed how the changes – which they estimate will see almost two million of the lowest income working households on Universal Credit around £1,000 a year better off on average – are being brought in a week earlier than planned.

The Department for Work and Pensions said, by bringing in the changes today, up to 500,000 more people could benefit before Christmas.

Claimants will be notified how much Universal Credit they will be awarded in their usual monthly statement, with the first of those to reflect the changes being issued today.

The chancellor said: “We want this to be a country that rewards hard work by helping the lowest income families keep more of their hard-earned cash.

More on Rishi Sunak

“That’s why at the budget, I announced an effective tax cut for two million people worth over £2bn.

“These changes come into force today and will mean that with Christmas approaching, hard-working families will keep an extra £1,000 a year of what they earn.”

Work allowances are the amount Universal Credit claimants can earn before their benefit payment is affected.

The taper rate is the amount a person’s Universal Credit is reduced by when their earnings are more than their work allowance.

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Autumn Budget 2021: Alcohol, fuel and UC announcements

The DWP said the increase in work allowances by £500 per year will mean many families will be able to earn over £500 per month before their benefits are tapered off.

Mr Sunak’s changes at last month’s budget followed criticism of his decision to not continue a £20 per week uplift to Universal Credit that had been introduced at the beginning of the coronavirus pandemic.

And charities warned that, despite Mr Sunak’s boost to work allowances and the taper rate, the end of the £20 per week uplift would still leave some families struggling.

Karl Handscomb, senior economist at the Resolution Foundation, said: “The welcome boost to Work Allowances and the taper rate in Universal Credit will benefit over two million families next year, who will be over £1,000 better off on average.

“This represents a major living standards boost to low-income families, by improving people’s incentives to enter work, and allowing them to keep more of their earnings.

“But while these changes mean more support for higher-earning families on Universal Credit this winter, the recent £20 a week cut in support means that 3.6 million families will still be worse off overall, particularly those who have lost their jobs, or who are unable to work.”

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Iain Porter, policy and partnerships manager at the Joseph Rowntree Foundation, said: “The reduction in the taper rate and increase in the work allowances is a significant and positive step for supporting working families and shows a serious intent to turn the tide of rising in-work poverty.

“However, the measures implemented today do nothing to support many families who are currently seeking work, or who are unable to work, due to caring responsibilities, sickness or disability.

“The recent £20-a-week cut to Universal Credit has now reduced the main rate of out-of-work support to its lowest levels in real terms in 30 years.

“Families on low incomes are facing mounting pressure on their finances as the cost of energy and prices on the shelves continue to rise.

“The government must ensure that support offered by our social security system allows those unable to work to live with dignity, and provides families seeking work with the stability needed to seize opportunities.”

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Reform UK’s Andrea Jenkyns says Nigel Farage’s row with Rupert Lowe was ‘clearly a big falling out’ – but insists it will ‘blow over’

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Reform UK's Andrea Jenkyns says Nigel Farage's row with Rupert Lowe was 'clearly a big falling out' - but insists it will 'blow over'

Reform UK’s most senior woman has told Sky News the Rupert Lowe row “doesn’t look great” and she doesn’t “want to see it in the news any more days”. 

Dame Andrea Jenkyns, who defected to Reform last year, accepted it was “clearly a big falling out” but suggested these spats do not always cut through to the public.

She insisted she was concentrating on winning as she looks to become the party’s first ever mayor in May.

In an interview with Sky News, Dame Andrea also spoke for the first time about her experience of domestic abuse, denying Reform has a “woman problem” but accepted “we need to start talking more about issues, what women are interested in”.

Having lost her seat as a Conservative in the 2024 election, Dame Andrea briefly quit politics only to return earlier this year as Reform’s newest recruit.

She is now standing as the party’s candidate to become the first Greater Lincolnshire mayor, in a race that psephologists think could be Reform’s best hope of turning itself from a party of protest into one that is governing.

That’s because Reform is on the march in Lincolnshire, which is a key battleground between the Conservatives and Reform in the local and mayoral elections in May.

More on Lincolnshire

Richard Tice, Reform’s deputy leader, took the Conservative seat of Boston and Skegness in the last election as Reform came second in a further two of the county’s eight constituencies.

Andrea Jenkyns spoke to Sky News' Beth Rigby
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Dame Andrea spoke to Sky News’ Beth Rigby

This farming country has long been part of the patchwork of Conservative England and it is in these heartlands that Reform hopes it can land a significant blow to its political rivals in the coming weeks.

“It’s a worry,” admits one Labour insider who doesn’t much relish the prospect of having to deal with a newly minted Reform party mayor should Dame Andrea win in May against Labour candidate Jason Stockwood, the Conservative Rob Waltham and independent Marianne Overton.

There is also the Lincolnshire council race, which Reform is targeting. All 70 seats are up for grabs and the Conservatives, which have a 38-seat majority, are defending 53 seats. The only way is up for Reform here, while the Conservatives, who have held this council for 10 of the past 13 elections, are bracing for a drubbing.

Tories say Jenkyns is from Yorkshire

The Conservatives make the point that they have a “strong local candidate who is born and bred in Lincolnshire, whereas Dame Andrea is from Yorkshire” when I ask them about the race.

“We are fighting hard, we have a proven track record of delivery in charge of local services whereas Reform aren’t tried and tested,” the Conservatives said.

“And if they’re anything like Reform nationally, who don’t turn up on important votes, then they won’t show up for people locally.”

Dame Andrea is still based in Yorkshire where she used to be an MP, as this is where her son attends school. But she rents a place in Lincolnshire and has vowed to move to the county should she win the mayoralty.

She also points out that she grew up in Lincolnshire and was a local councillor before moving to Yorkshire after her shock victory over Ed Balls in the 2015 general election.

Read more:
Rupert Lowe consulting lawyers over libel action
Police launch investigation into Rupert Lowe over ‘verbal threats’

Andrea Jenkyns with farmers
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Dame Andrea is hoping to become Reform’s first mayor

‘Fed up’ farmers eyeing Reform

When we meet her on the road in Lincolnshire, she takes us to meet some farmers whose livelihoods are under intense pressure – be it over local flooding and flood defences or changes to inheritance tax and farming subsidies that are affecting their farms.

There is little love for Labour in the gathering of farmers, who in the main seem to be lapsed Conservative voters that are now eyeing Reform, as a number of them tell me how they are fed up with how the Environment Agency and local politicians are running their area.

“We’re fed up with all of them,” said one farmer.

“We just want some action. As farmers we know drainage is so important, we just want to get it sorted.”

They are also alarmed and anxious about the inheritance tax changes introduced by Labour and are pressing for carve-outs for small farms handed down from generation to generation amid fears they will have to sell up to pay the inheritance tax bills.

But the troubles at the top of Reform hadn’t gone unnoticed by this group. Unprompted, one of the farmers raised the row between the suspended Reform MP Rupert Lowe and the party leadership, telling Dame Andrea that while he “really likes Reform” he doesn’t much like what he’s seeing at the moment.

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Reform UK row explained

‘Spat looks worse because Reform is small’

The farmer said: “I don’t follow politics avidly. But I just look and say [Rupert Lowe] is full of common sense and I really like him and I don’t know what’s happened, but it looks from outside [he has been] chucked under the bus.

“And I’m like, am I getting second thoughts about Reform? I don’t know what’s gone on, but it concerns me about what’s going on with Reform.”

Dame Andrea tries to downplay it and says the “spat” looks worse because it’s a smaller party.

“To me it’s about the movement, the right policies, to carry on. What is the alternative? This will blow over and Reform will keep getting strong,” she said.

Can Jenkyns and Farage co-exist?

Dame Andrea would clearly like the infighting to stop, but it raises questions for me about how she will fit into this very male-dominated party, in which all four MPs are male, with Dame Andrea the only senior woman beyond the former Conservative minister Ann Widdicombe.

She is, like Nigel Farage, a disrupter – Dame Andrea was one of the first Tories to call for Theresa May and Rishi Sunak to stand down, and a conviction politician who fervently backed Boris Johnson and Brexit.

If she does win this mayoral race she will be a big personality in Reform alongside Farage, which leaves me wondering if they can co-exist in a party already at war.

Andrea Jenkyns
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Dame Andrea says she doesn’t think the party has a ‘woman problem’

Jenkyns was in an abusive relationship

Reform does struggle with female voters, with fewer women voting for the party against all age cohorts, young to old. Dame Andrea tells me she doesn’t think the party has a “woman problem”, but she does think it needs to talk about more issues that she thinks women are interested in, citing education, special educational needs and mental health.

When I raise the matter of violence against women and how the party has handled revelations that one of its own MPs was jailed in a youth detention centre as a teenager for assaulting his girlfriend, Dame Andrea reveals to me she has been in an abusive relationship.

“I know how it can break you. I know how you sort of start losing your identity. So I’ve been on that side,” she said.

“And I’ve also helped constituents to fight against this, so it matters, we need to do more in society because whether it’s men or women, one is too much in my view.”

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Out on the campaign trail, even in the Labour territory of Lincoln where Hamish Falconer is the local MP, Dame Andrea gets a warm welcome. She tells me she thinks she can win it: “I might be living in blind hope here. But I’ve got that feeling.”

This corner of England has become a test bed for Reform to see if it can turn from a party of protest into one that has a shot at governing in the form of a regional mayor.

If Reform can succeed in that – what might come next? It would be a remarkable comeback for Dame Andrea and a remarkable victory for Reform too.

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Labour MPs and officials briefing against work and pensions secretary should ‘shut up’, Baroness Harman says

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Labour MPs and officials briefing against work and pensions secretary should 'shut up', Baroness Harman says

Labour MPs and officials briefing against work and pensions secretary Liz Kendall should “shut up”, Harriet Harman has said.

The Labour peer told Beth Rigby on Sky News’ Electoral Dysfunction podcast Labour needed to “pull together” rather than descend into infighting.

Ms Kendall said on Thursday she was “determined to fix the broken benefits system” ahead of announcing “radical welfare reforms” next week.

Ministers have been priming Labour MPs and the public for cuts to a ballooning welfare bill since the start of the year.

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Baroness Harriet Harman said people criticising Liz Kendall should ‘shut up’

Asked what she thought of briefings against Ms Kendall as welfare cuts loom, Baroness Harman said: “I hate those sorts of briefings.

“I don’t think anybody should be briefing against Labour ministers who are trying to implement the manifesto.

“You know, she is incredibly competent and leads a really dedicated team. So I think they should just shut up and pull together.”

More on Benefits

Work and Pensions Secretary Liz Kendall. Pic: PA
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Work and Pensions Secretary Liz Kendall. Pic: PA

More and more Labour MPs have publicly criticised the impending benefit cuts, with many concerned they will hit people with disabilities the most.

Downing Street has taken the unusual step of calling all 404 Labour MPs into Number 10 over Wednesday and Thursday for briefings on the changes ahead of the details being released next week.

Baroness Harman said she thinks Ms Kendall is a “rising star” and is “absolutely certain” the PM and chancellor will stand behind her.

Read more:
What welfare cuts could be announced?

Labour MPs criticise benefit cuts

The peer was social security secretary – the equivalent of Ms Kendall’s job now – at the start of Tony Blair’s first term after Labour’s 1997 landslide win.

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‘Government’s plan to cut welfare is terrifying’

She was forced to defend benefit cuts just after they came to power and said there are “lots of parallels between what we were trying to do then, and what the government is trying to do now”.

However, she said the difference is, in 1997 she was making the argument for welfare cuts to help single parents into work by herself, but Ms Kendall is being backed by Rachel Reeves and Sir Keir Starmer.

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Is Keir Starmer bringing back austerity?

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Is Keir Starmer bringing back austerity?

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

Sir Keir Starmer is doubling down on his bid to reduce government waste, but is his plan a fix or just more spending spin? Beth is in Hull after hearing what the Labour leader is promising, including scrapping NHS England to “cut bureaucracy” and bringing management of the health service “back into democratic control”.

Alongside Harriet and Ruth, they also discuss Starmer potentially facing down a rebellion from his own MPs over plans to shake up benefits reform and welfare payments.

The cracks are widening for Reform UK’s internal spat. Beth speaks to Andrea Jenkyns, who left the Tories to join Reform, on the party’s latest bust-up, and Ruth and Harriet look at whether the party’s chaos is helping both Labour and the Conservatives.

Email us at electoraldysfunction@sky.uk, post on X to @BethRigby, or send a WhatsApp voice note on 07934 200 444.

And remember, you can also watch us on YouTube!

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