CUTS to universal credit have been softened and the expected increase to minimum wages were announced as part of the government’s autumn budget.

Chancellor Rishi Sunak revealed a package of measures which will see the universal credit ‘taper rate’ cut, the National Living Wage rise, and alcohol taxes overhauled.

The taper rate – which affects the amount that universal credit payments are reduced for working benefit claimants – has been cut from 63p to 55p and comes after widespread criticism of the government for abandoning its £20-a-week uplift for payments during the coronavirus pandemic.

The reduction means that for every pound earned, receivers of universal credit will keep eight pence more of the money than they did before.

As expected, the National Living Wage will rise from £8.91 to £9.50 an hour for those aged 23 and above and the freeze on fuel duty will continue for another year.

In the House of Commons on Wednesday (October 27), the Chancellor announced changes to taxes on alcohol – which he called "the most radical simplification of alcohol duties for 140 years” – but they will not come into force until 2023.

The overhaul means stronger drinks like red wine, high-strength white cider and fortified wines will go up in price but duty on lower-strength drinks such as draught beer and sparkling wine will fall.

Mr Sunak also announced a new lower rate of duty for draught alcohol which applies to pints of beer and cider poured out of containers over 40 litres.

He said the ‘draught relief’ would cut the cost of a pint by about three pence.

The planned increase in duty on spirits, wine, cider and beer will also be scrapped.

Two huge tax plans were announced by the Chancellor earlier this year and will see the thresholds for income tax frozen for five years.

The government also announced employees, employers and the self-employed would all pay 1.25p more in the pound for National Insurance from April 2022 to fund social care.

Local councils will also receive a share of £4.8 billion in grant funding over the next three years.