DWP makes shocking admission…
But I think most of us knew this already…
Labour have said the changes to Universal Credit for working people could cost 2m families £1,600 a year.
The government has warned that almost 60,000 working people could lose out after impending changes to Universal Credit.
The new benefits system is supposed to be streamlined and reward those who take on more work.
Earlier this month the Mirror revealed that a single parent with one child earning £9 an hour on tax credits would notice a huge drop in their income if they switched.
The work allowance is the amount of income Universal Credit claimants can earn before their benefits are tapered away.
A single parent not claiming for housing costs will see the threshold almost halved from £734 a month to £397 a month.
Senior economic analyst David Finch said “Some single parents claiming UC could find themselves £29 a week worse off compared to what they would have received under tax credits. They’d have to work another 11 hours a week to get this money back.”
Shadow Work and Pensions Secretary Owen Smith said: “By writing to sixty thousand workers telling them they’re about to be made worse off, Stephen Crabb has put his name firmly and squarely on the Tories’ cuts to Universal Credit. Instead of cancelling the cuts as he should have done, he’s rubber-stamped changes that penalise work, hitting low and middle-paid workers the hardest. Over the next five years, Crabb’s cuts to Universal Credit will make more than two million working families worse off by around £1,600 a year. Rather than writing to those unlucky enough to be on Universal Credit and not tax credits, he should have seen the devastating impact these cuts will have and reversed them full.”
Are the cuts going too far?
Will this affect you?
Should we better or worse off when we’re in employment?