Briefing on universal credit work allowance cuts

May 2016

This briefing describes how the cuts to UC work allowances reduce the gains from work, making it harder – not easier – for working parents to derive more of their income from earnings, in much the same way as the now abandoned tax credit cuts would have. Our analysis finds that even parents already working full time at the increased minimum wage may have to work the equivalent of an extra month per year - and single parents two months - just to recoup the cut. It also discusses the limitations of transitional protection in cushioning the cut for those moving from tax credits to UC.

Read the full briefing