Stealth Cuts Are Making Universal Credit Toxic to the Working Poor

Stealth cuts in the support for the working poor receive scant media interest. At least that seemed to be the lesson when the autumn statement confirmed a further £600m raid on the troubled universal credit – a move that didn't cause a ripple. The unwelcome news comes in the form of a cash freeze in the amount that households will be able to earn – their "work allowance" – before they start seeing their universal credit withdrawn.  Everything above the work allowance is taxed at least 65p in the pound.  The decision to erode the value of the work allowance year on year rather than uprate it with inflation is going to hit four out of five of the 4 million working families expected to be on UC. The size of the loss will vary with family circumstance – homeowners are more affected than renters – but a single parent will be up to £420 worse off in 2017. For a couple with children it will be £230. The figures will be larger if inflation is higher than projected – the poor now shoulder that risk. Read more on the Guardian website.