THOUSANDS of working Universal Credit claimants in Denbighshire and Conwy will be able to keep more of the benefit as part of a major tax cut, figures suggest.

Chancellor Rishi Sunak announced in his latest Budget that the taper rate, the tax on a claimant's payment for every £1 that they earn above their work allowance, will be cut from 63 per cent to 55 per cent within weeks, to "reward work" of low-income families.

Department for Work and Pensions data shows that, in Conwy, 43 per cent of the 9,908 Universal Credit claimants were in work, while in Denbighshire 40 per cent of 8,929 Universal Credit claimants were working as of the latest available figures on August 12.

This means the tax burden on a total of 4,236 claimants in Conwy and 3,561 in Denbighshire will be eased when the move comes into effect before December 1.

Of the claimants in work as of mid-August, the majority were aged between 30 and 34 in both Conwy (704) and Denbighshire (623).

Mr Sunak has faced some criticism that the taper rate cut does not compensate for the £20-a-week blanket reduction in Universal Credit in early October, or help people who are not in work.

In Conwy, roughly 5,700 Universal Credit claimants were not in work as of August 12, while in Denbighshire the estimated number is 5,400.

Announcing the changes to the Commons, Mr Sunak said: “This is a £2billion tax cut for the lowest paid workers in our country.

“It supports working families, it helps with the cost of living and it rewards work.”

The Chancellor said the changes mean that nearly two million families across the UK will keep on average an extra £1,000 a year.

But Denbighshire Citizens Advice (DCA) said the change "doesn't cushion the blow" of removing the £20-a-week uplift for people looking for work.

"The change to the Universal Credit taper from 63p to 55p in the pound is welcome, but it doesn’t cushion the blow of the £20-a-week cut for those still looking for work or the 1.7 million people unable to work because of disability, health issues or caring responsibilities," DCA said on social media.

"Given the cost-of-living crisis, both governments must ensure every family is able to access the support they need this winter."

In her response to the Budget, Labour’s shadow chancellor Rachel Reeves said “never has a Chancellor asked the British people to pay so much for so little”.

She said: “After taking £6 billion out of the pockets of some of the poorest people in this country, he is expecting them to cheer at being given £2 billion to compensate.”

Thomas Lawson, chief executive of anti-poverty charity Turn2us, said the changes are "welcome steps" to make sure people on low incomes keep more of their wages.

However, he added: "For single parents and others with caring responsibilities the benefits will be smaller, and for people unable to work at all, this will do nothing to help with the rising cost of living.”

The number of people on Universal Credit across Great Britain has risen substantially during the pandemic.

In March 2020, some 3 million people were on the means-tested benefit, but by August this year that figure was at 5.8 million – a 93 per cent increase.

In Conwy, the number of claimants rose by 82 per cent, from 5,435 in March last year, while in Denbighshire the number rose by 71 per cent, from 5,238, during the period.