As per the study by a leading thinktank, nearly 2m people will lose over £1,000 yearly with universal credit. Among the biggest losers, self-employed workers having below average incomes and low-income families will be there.
So the introduction of universal credit will make people suffer large swings in their yearly incomes .claimants who owned their own houses or had savings above £6,000 will undoubtedly suffer more. Although their income would recover over time, on the other hand, people or groups who were disabled or else lived with a disabled person would experience a long term, squeeze on their incomes.
People who shift their home, or else change jobs or their hours will be forced onto the flagship benefits program without any assistance.
As per Research Economist at the IFS and an author of the briefing note, Tom Waters, ‘ biggest losses experienced because of the switch are a mostly small number of specific choices which government planned regarding universal Credit design like treatment of low-income self-employed. On the other hand, many of large losses will be temporary for those concerned. Though, when estimating people’s income over the relatively long term, universal credit still hit the persistently poor the hardest on an average.’
Margaret Greenwood, Labor’s Shadow Work and Pensions Secretary alleged that news showed that alterations were hitting the poorest the hardest. She also added that ‘pensioners with disabled people and working-age partners would have been eligible for disability premiums are among those who get the harshest treatment under universal credit. It could be thousands of pounds worse off in comparison to what they were under the old system.’
A DWP presenter supposed that ‘this report wrongly estimates that everybody was claiming their full benefits entitlement under the old system, which they were not as the system was very complex. ‘She added that ‘with latest work allowances alterations about 2.4 million households will be up to £630 yearly better off. Also, people will access about £2.4 billion of past unclaimed benefits.’ Also, Universal credit will support people into work and also assist them in enhancing their earnings. It can happen by offering a vital safety net for those who require. Despite the fact that the old system trapped people on benefits or taxed them punitively for taking on more hours.
