Universal Credit has been watered down so much that it risks failing to achieve its original purpose, warns Resolution Foundation

Tuesday 24 May 2016

In a report published on 3 May 2016, the Resolution Foundation think tank states that cuts to Universal Credit work allowances have undermined the incentive to enter work for a short number of hours.

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In a report published on 3 May 2016 ‘Universal Credit: making a success of Universal Credit', the Resolution Foundation think tank states that cuts to Universal Credit work allowances have undermined the incentive to enter work for a short number of hours. The reports states that significant numbers will lose income when they transfer from the tax credit system to Universal Credit, even accounting for income tax cuts and the National Living Wage. The report concludes that:

“… universal credit has shifted from being a vehicle of genuine reform designed to improve jobs and earnings prospects for lower income workers to a simple exercise in cost cutting.”

For more information, read the full report.

For media stories see Working mums 'lose out most' from Universal Credit the Daily Mirror 3.05.16, Universal Credit veering off track, Resolution Foundation says BBC News 3.05.16 and Universal credit reduced to cost-cutting exercise by Treasury, say experts Guardian 3.05.16.

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