400,000 low income working families will be worse off with Universal Credit
The findings of a CIH report estimate that 400,000 working families will have less income with Universal Credit in 2015 than they did in 2010, demonstrating that the government's aim for households to be better off in work than out of work under Universal Credit is not the case for all families.The 400,000 families who could be hardest hit include some of the lowest earning in the UK - households that earn £247 or under per week will all see a fall in real income in 2015 and lone parents with one, two or three children will always be worse off if Universal Credit continues in its current format.
Grainia Long, CIH chief executive, said: "This is a critical time - 400,000 of the lowest earning working households in the UK could see a real drop in income under Universal Credit. Changes to address this need to be made now.
The principles underpinning Universal Credit are the right ones, but as our report sets out, it is imperative that the detailed design of Universal Credit ensures that low income working families are not disadvantaged."
Read our report - Making work pay report
Read the Department for Work and Pensions (DWP) report - Universal Credit implementation: meeting the needs of vulnerable claimants
Related press release - Getting the design of Universal Credit right now is critical to its success