Iain Duncan Smith's flagship welfare policy, universal
credit, is in danger of costing more than planned as it has a perverse
incentive for people to limit their working hours in order to keep receiving benefits,
a think-tank has said. The Resolution Foundation said that families lose
two-thirds or more of each extra £1 of earnings above the "work
allowance" introduced under universal credit, up to 20 to 26 hours on the
minimum wage. “This does not represent a significant improvement in work
incentives compared to the current system and for significant numbers is, in
fact, worse,” it said. Read more on the Resolution Foundation website.
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