The net income of a single mother of two working full-time on the minimum wage may be £2,891 lower next year under universal credit compared to if she was on tax credits.
In Scunthorpe the number of households claiming universal credit is estimated to be as high as 10,000 by 2020-2021 meaning lots of local families will be negatively affected. Today the Labour Party has called a debate to challenge the huge Tory cuts to Universal credit that will massively affect working families.
Universal credit is a replacement for several other benefits; these are both child and working tax credits, housing benefits, jobseeker’s allowance, employment and support allowance and income support.
The Labour Party has called for full protection for current and future claimants of Universal credit and for the full reversal of cuts to work allowance of Universal credit. We also call for transitional protection for new claimants and for tax credit recipients who face a change of circumstances.