The Chancellor’s small but welcome change to Universal Credit Taper rates won’t offset the huge impact of the benefits freeze, cuts to the Universal Credit Work Allowance and the expected rise in inflation, says the Joint Public Issues Team (JPIT).
JPIT says the Universal Credit give away is expected to give back to low income families £0.7Bn, while the benefits freeze costs low income families more than £3.6Bn and the Universal Credit Work Allowance cut will cost £3.2bn (all 2020-21 figures).
The Joseph Rowntree Foundation has concluded that restoring the Universal Credit Work Allowances, that were cut at the last budget, would be a better way of reducing poverty than the Universal Credit taper rate change because, while both help low income working families, Universal Credit Work Allowance helps the lowest income families proportionately more.
