Millions to lose £52 a week with Universal Credit, report shows

From The Observer: A comprehensive analysis of the impact of Universal Credit, compiled by the Policy in Practice consultancy, found that almost two in five households in receipt of benefits would lose an average of £52 a week.

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…]