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Universal Credit failing low-income families

  • 03/05/2016
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New report shows millions will be worse off

Family at breakfast

A new report published today says that Universal Credit (UC) is failing in its aim to encourage people to work more hours by allowing them to keep more of their low-wage top-ups. The Resolution Foundation think tank sets out a three point plan for the new Secretary of State, designed to both ensure that UC will provide the support needed for families moving into and progressing in work in the future and to make implementation as simple as possible.

One of the report’s key findings shows that almost 3 million working families entitled to support through tax credits will no longer receive any in-work benefits and will lose, on average, £42 per week. In addition, a further 1.2 million are set to receive UC but will be, on average, £41 a week worse off.

Most shockingly, the report states that only around 200,000 families (a mixture of those without children and couple parents) who are no longer entitled to UC at all will be better off overall following the cuts to in-work support and boosts to income from the National Living Wage (NLW) and income tax cuts.

Turn2us Help

If you are on a low income use our website tools and find out what financial support is available to you. The ‘In work - on a low income' section of our website has information about help you might be eligible for, including Working Tax Credit.

You can use our free Benefits Calculator to check your latest welfare benefits entitlements. Even if you have checked your benefit entitlements in the past, it is worth checking again, especially if there has been a change in your circumstances.

If you’re struggling, you can also check if you might be eligible for a charitable grant or other support by using the Turn2us Grants Search.

Read more about this story on The Guardian website

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