13 April 2018
Citizens Advice research on Universal Credit and modern employment
Citizens Advice has published two reports that consider how Universal Credit is supporting low-income working families.
The first focuses on Universal Credit and work incentives, by analysing the impact of the work allowance reduction and how workers moving onto Universal Credit might adjust to it. CAB research suggests that one in four people receiving in-work benefits couldn’t make up a £100 reduction in their monthly income, which many are likely to face when moving onto UC.
The second looks at the challenges posed by UC for people in non-traditional work, such as those with fluctuating earnings or self-employed workers.
CAB recommendations for Government incude:
Reassess the work allowance to strengthen people’s incentive to work;
Review the Minimum Income Floor so self employed people aren’t financially disadvantaged;
Improve the flexibility of UC’s monthly assessment period so people not paid monthly can avoid income shocks and;
Ensure the appropriate budgeting support is available to UC claimants.
The reports are available on the CAB website
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