Universal credit claimants lose some of their benefits when they earn more money. The rate at which they lose the benefits is known as the taper rate. The new taper rate was reduced to 55% from 63%, which means that per extra pound in income benefits claimants will lose 55p instead of 63p.
Workers with dependent children or disabilities are allowed to earn a certain amount before they start losing their universal credit, which is called the work allowance. The work allowance has increased by £500 a year, also increasing the benefits entitlement of working benefit claimants.