Friday, 27 November 2015

Think tanks on welfare reforms

The Resolution Foundation and The Institute of Fiscal Studies say that under Universal Credit, 2.6m working families will be about £1,600 a year worse off than they would have been under tax credits. Individuals currently on tax credits transferred to Universal Credit will not see their cash payments drop because they will be offered transitional protections. The Treasury said it was "not legitimate" to compare the payments received by a new claimant under the Universal Credit system with the amount the same person would receive under the current system. IFS director Paul Johnson explained: "The long-term generosity of the welfare system will be cut just as much as ever intended as new claimants will receive significantly lower benefits than they would have done before the July changes.”

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