In today's mini-budget, Kwasi Kwarteng, Chancellor of the Exchequer, announced changes to the way claimants can receive Universal Credit.

Kwasi Kwarteng pledged to “turn the vicious cycle of stagnation into a virtuous cycle of growth” as he set out the new Government’s approach to the UK economy.

Universal credit change in today's mini budget

The change means more people who receive the benefit will have to meet regularly with their work coach, take steps to increase their earnings and will face benefit reductions if commitments aren't met.

People on Universal Credit will now be expected to meet regularly with a work coach to take further steps to find work and boost pay.

This is expected to push 120,000 Universal Credit claimants to take active steps to find work.

The Chancellor already confirmed ahead of his mini-budget that the national insurance hike introduced by Boris Johnson’s government to pay for social care and tackling the NHS backlog will be reversed.

Cap on banker's bonus lifted

Chancellor Kwasi Kwarteng has removed the cap on bankers’ bonuses.

Making his mini-budget announcement in the House of Commons, the Chancellor said the UK economy was dependent on a “strong financial services sector”.

He confirmed the UK Government would be scrapping rules which cap bankers’ bonuses.

The cap was introduced across the EU in 2014 after the global financial crisis.

It limited the amount a banker could be paid in bonuses, capping it at twice their annual salary unless shareholders agree.

Chancellor Kwasi Kwarteng, concluded: “For too long in this country, we have indulged in a fight over redistribution. Now, we need to focus on growth, not just how we tax and spend.

“We won’t apologise for managing the economy in a way that increases prosperity and living standards. Our entire focus is on making Britain more globally competitive – not losing out to our competitors abroad.

“The Prime Minister promised we would be a tax-cutting government. Today, we have cut stamp duty, we have allowed businesses to keep more of their own money to invest, to innovate, and to grow, we have cut income tax and national insurance for millions of workers, we are securing our place in a fiercely competitive global economy with lower rates of corporation tax and lower rates of personal tax.

“We promised to prioritise growth. We promised a new approach for a new era. We promised to release the enormous potential of this country. Our growth plan has delivered all those promises and more.”