New Tory benefit cuts mean that families are set to lose £1,600 a year on average in the New Year.
Changes announced in the summer budget mean that anyone claiming Universal Credit and tax credit will see their work allowance cut from £6,420 to £3,850 in April. Therefore, anyone earning over £3,850 won’t have their wages topped up anymore.
According to the Government, there will be 500,000 people on the new benefit by April, and nearly three million by 2018.
The Work and Pensions Secretary has said that workers can, however, “recoup” the loses by working an extra 200 hours a year.
Responding to the Social Security Advisory Committee’s call for a review, the Department for Work and Pensions said: “Someone could recoup the loss from the Work Allowance changes by working 3-4 additional hours a week at the national living wage to which they are entitled.”
Calling on the Tories to “issue a full U-turn”, Shadow Work and Pensions Secretary Owen Smith said: “A single mother working full time with two children is set to be up £3,000 worse off as a result of the cuts, while 2.6 million working families stand to lose an average of £1,600.”
“It’s the measure of Iain Duncan Smith that he is trying to shift the blame for the cuts on to the victims. His Christmas message is work an extra 200 hours a year and you’ll be no worse off.”
