Universal credit cuts will leave millions worse off

6 January 2016

Cuts to universal credit will leave millions of working families worse off, PCS says as MPs debate the issue.

Despite the tax credits U-turn in the autumn statement, chancellor George Osborne confirmed planned cuts under the government's flagship social security scheme will remain in place.

Independent analysts at the Institute for Fiscal Studies say 2.6 million working families on universal credit will be £1,600 a year worse off by 2020, and Resolution Foundation researchers found low and middle-income working families will lose up to £1,300 a year on average.

Tens of thousands of those who could lose out are the Department for Work and Pensions' own staff, other civil servants and those in private companies working on government contracts.

MPs this afternoon debated cuts to the universal credit work allowance after Labour secured an opposition day debate.

PCS general secretary Mark Serwotka said: "Universal credit has the unfortunate distinction of being the only benefit the government is cutting before it has even been fully introduced.

"It has been a shambles from day one because it is clear the political imperative is to cut support rather than help people back into work or into higher paying jobs.

"The cuts targeted at tax credits claimants will simply shift to universal credit. They were wrong then and are wrong now and must be scrapped."


 

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