Changes that the Chancellor made to universal credit in the Budget have come into effect today.

Rishi Sunak reduced the taper rate from 63% to 55%, meaning that in work claimants are able to keep more money per £1 they earn.

Also, work allowances, the amount a claimant can earn before their Universal Credit is reduced, will increase by £500 per year.

Work and Pensions Secretary Thérèse Coffey said: “From today, two million people will see their income boosted by £1,000 per year, on average, as we bring in an effective tax cut worth £2.2bn for the lowest paid.

“We are making the change earlier than planned which means up to 500,000 more households can benefit before Christmas.”

Rishi Sunak, Chancellor of the Exchequer 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.

“That’s why at Budget, I announced an effective tax cut for 2 million people worth over £2 billion. These changes come into force today and will mean that with Christmas approaching, hard-working families keeping an extra £1,000 a year of what they earn.”