Tuesday, 2 July 2013
New Universal Credit Twist as it Emerges 900,000 Workers will be Worse Off.
UP TO 900,000 low income workers will be worse off under the childcare element of the new Universal Credit.
That's the sensational statistic tbg has learned today from the Joseph Rowntree Foundation.
Where as under the current system anyone with two children earning under £13,000 a year can get full help with childcare costs with tax credits under the new Universal Credit which will replace tax credits anyone earning under £10,000 a year will see their provision cut to just £30.00 a week in help per £200 childcare costs.
At the same time though, any couple earning between £10,000 and £13,000 will get help to the tune of double that amount at £60.00 a week per £200 childcare costs.
And whilst the government argues that the new system will "make work pay" The Joseph Rowntree Foundation says that whilst 600,000 people will benefit from the change 900,000 will lose out as a result of falling living standards, stagnant wages and what they say amounts to a cut in in-work benefits.
The statistics have today led to the Department for Work and Pensions admitting that on top of the current teething problems exposed by tbg, "the D.W.P. may start consulting on the planned changes AGAIN before Parliament's Summer Recess."
The news was all too confusing for Minister Esther McVey yesterday who not only struggled through an interview on Radio 4 but also dropped an enormous clanger by accusing "housing associations of being responsible for a shortage of one bedroom homes" rather than the so-called 'bedroom tax'.
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