One of the key advantages of the new
scheme is that it removes the confusing
overlaps between tax credits and housing benefit, which currently mean
that working households can suffer high loses in net income if their wages
increase. Under the present system the loss can be as high as 96p of every £1
increase in gross earnings. By combining credits and benefits, universal credit
aims to ensure that working households keep at least 20p of every extra pound
they earn.
so, applying the “government
spokesperson” best gloss a “fivefold improvement”; but ..
The government has watered down the benefits
to be gained from these changes by leaving council tax benefit out of the new
system, so that working families whose earnings increase will still face the vicissitudes
of whatever mechanisms for withdrawing council tax support apply where they
live. But the majority of working families will be better off – indeed, the
government's own assessment reckons that two-thirds of working families with
children will benefit, against only 18% who will lose out.
Nothing
8 minutes ago
1 comments:
"By combining credits and benefits, universal credit aims to ensure that working households keep at least 20p of every extra pound they earn. "
So, a single mother who gets a job at McDonalds in town is going to end up with a net extra of about £10/day, less a couple of quid for bus fare, is about £8/day.
Of course, they'll then have to arrange for someone to pick up the kids, to find the energy to make a meal and so forth. Or they can just sit at home watching TV.
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