Tuesday, 16 October 2012

Universal Credit: The Benefit Cut for Workers That Has ‘Escaped Notice’

A Labour MP has hit out at plans to dock the benefits of workers under Universal Credit which he says has almost “escaped notice”.  Michael Meacher, Labour MP for Oldham West and Royton, was citing research by the Resolution Foundation which estimates that nearly 1.2 million working adults will face losing some of their benefits under Universal Credit if they do not comply with new requirements to work longer hours, find an additional job or seek higher wages.  Under UC, the criteria of 16 and 24 hours per/week for working tax credit eligibility will be scrapped and claimants will gain entitlement to an appropriate amount of in-work support for working any number of hours.  Under the new system any claimant of working benefits is required to meet an earnings threshold equal to national minimum pay rates for a 35-hour week, to be earned if necessary through such combined measures as working longer hours, getting their employer to increase their hourly wage or getting an additional job on top of what they were already working.  Download a copy of the report from the Research Foundation’s website.

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