Universal Credit Is “Less Generous” Than Tax Credits

For the first time, an authoritative statutory body has recognised that the cuts to Universal Credit announced in last summer’s Budget will mean that it is much less generous than was originally planned, making it effectively a cut when compared with Working Tax Credit and Child Tax Credit which it replaces. Since it was first announced, just about every change announced has made UC meaner. Last summer’s Budget was the worst of all, Mr Osborne announced cuts to spending of £4,887 million:

·         Very substantial reductions in the work allowances (the amount that can be earned before UC is ‘tapered’ away);

·         Limiting the child element to two children for new claims and births; and

·         Removing the first child premium for new claims.

Read more on the Touchstone blog.