Labour to pledge shake-up of universal credit as part of wider ‘new deal’

Shadow work and pensions secretary expected to propose taper rate reduction that will be first element of social security overhaul

Labour will promise on Monday to overhaul the universal credit system by allowing low-income workers to earn more without seeing their welfare payments cut, in a move potentially costing billions of pounds annually.

The shadow work and pensions secretary, Jonathan Reynolds, is expected to promise to “make work pay” as part of a wider strategy to create “jobs you can raise a family on”.

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