While Universal Credit has already been rolled out in some areas for new claims, a crunch is due to come next year when millions are moved from the current system to the new programme, which rolls several benefits into a single payment.
Some 2.8 million homes would see their income cut under the Universal Credit system, according to the analysis.
According to the research, a million homeowners currently receiving tax credits will be worse off under the new system. They will lose an average of £43 a week.
Researchers found that 600,000 working single parents receiving the current tax credits system will be worse off, losing £16 a week on average. About 750,000 households on disability benefits will be worse off. Their average loss is £76 a week.
The self-employed lose out under rules in Universal Credit that assume a minimum income from self-employment, usually £1,187 a month. It means that 600,000 self-employed people will be worse off.
Under the tax credits system, payments are made for more than two children if they were born before 6 April 2017. As a result, 300,000 families will be worse off, losing an average of £40 a week each.
[Read full article on Guardian website…]