Rishi Sunak delivered his autumn budget this afternoon, during which he announced a taper rate reduction to people around the UK. 

Many of the plans on the budget were leaked before today's announcement, however the reduction to taper rates had not been previously unveiled. 

But what exactly is the taper rate, and what does the reduction mean for families?

Here's what you need to know...

What is the taper rate? 

The taper rate is amount your benefit payment reduces as your income increases. 

Currently 63p is taken off your benefit for every extra £1 earned after tax, with the rate set at 63%. 

In today's announcement, the chancellor confirmed this taper rate would be reduced to 55p, a reduction of 8%.

This will come into force by December 1 at the latest.

This will benefit low-income families where the adults are in work, because it will increase their overall income. 

However, families where the adults don't work will not benefit from this move after the £20 cut to universal credit came into force earlier this month.  

What did Rishi Sunak say about the taper rate?

On the move, the chancellor said: "The Universal Credit taper withdraws support as people work more hours. The rate is currently 63%, so for every extra £1 someone earns, their Universal Credit is reduced by 63p.

"Let us be in no doubt: this is a tax on work – and a high rate of tax at that."

He added: "To make sure work pays, and help some of the lowest income families in the country keep more of their hard-earned money, I have decided to cut this rate, not by 1%, not by 2% – but by 8%."

Will the taper rate reduction apply to Scotland?

Yes - this will apply to the people of Scotland because benefits are not devolved and reserved to Westminster.