MP backs call for action on Universal Credit

WARRINGTON North MP Helen Jones has backed a call by the shopworker’s union for the government to do more to prevent children in working families falling into poverty after their parents are moved on to Universal Credit.
On March 14 the government tabled a statutory instrument, implementing a reduction in the Universal Credit taper from 65 per cent to 63 per cent.
Ms Jones said: “Research conducted by Usdaw shows that after the reduced taper, someone on Universal Credit earning the government’s National Living Wage rate of £7.50 an hour, would take home just £7.55 for doing an additional four hour shift. That is £1.89 per hour – barely covering travel costs.“
“The reduction in the clawback rate goes nowhere near offsetting the enormous £2,000 to £3,000 annual cuts that Universal Credit represents or taking the taper back to the 55 per cent rate that was originally intended.“
Usdaw general secretary John Hannett said: “Universal Credit is a ticking time bomb that will plunge far more working families into poverty, when they are transferred on to it. We supported the initial intentions of Universal Credit, to simplify benefits and improve incentives to work.
However, severe cost cutting has turned Universal Credit into a real threat to the incomes of low-paid working families.
“The Prime Minister pledged to support families struggling to make ends meet, yet this minor measure is the sum total of changes to help the poorest working families, who do not benefit from the income tax personal allowance increases.
“Millions of low and middle income workers have suffered the double-whammy of a 15-year collapse in average incomes and severe government cuts to in-work benefits. They are still facing a struggle to afford the basic costs of living. The cuts to Universal Credit are already plunging recipients into debt and turning families from just about managing into just can’t manage.”