Monday, 16 March 2015

Universal Credit Flaws Make Shorter Hours Better For Some

The coalition government’s welfare changes will make it more attractive for some people to work short hours, even if the policy does improve overall financial incentives to work, says a review. Universal Credit has flaws that particularly affect millions of single parents, second earners and workers without dependent children – largely younger single people. For some, the work disincentives become worse than under the current system and, for others, the system is constructed so that their income falls very little if they halve their hours from 16 a week to eight, according to what is probably the largest independent review of the measure’s likely impact on more than 8 million claimants. Download a copy of the review from the Resolution Foundation website.

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