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People on Universal Credit are set to be handed an extra £250 from the Labour Party government following a rule change. For the first time ever, the Universal Credit standard allowance will permanently rise above inflation, amounting to £725 by 2029/30 in cash terms for a single person aged 25 or over.

This is the highest permanent real terms increase to the main rate of out-of-work support since 1980, according to the IFS. Reforms set out in the Universal Credit Bill will look to rebalance the core payment and health top up in Universal Credit (UC).

This will address the fundamental imbalance in the system which creates perverse incentives that drive people into dependency. The Universal Credit standard allowance is set to be around £250 higher than an inflation only inc

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