Reforms to Universal Credit

Post date: 
08 July 2015

New research by CPAG and the Trade Union Congress (TUC) finds that much bigger reductions to child poverty could be achieved by channelling support through Universal Credit instead of raising the income tax threshold.

The report, Reforms to Universal Credit, compares alternative options for helping low-income families through Universal Credit. All 13 options are of almost identical expenditure to the current cost of immediately raising the income tax threshold to £12,500.

In a ranking of 13 options, the tax threshold proposal cost by far the most, yet came bottom of the list for its child poverty-reducing potential. The other 12 options investigated would improve Universal Credit to varying degrees in one of three ways: (1) reducing the taper rate, (2) increasing work allowances, and (3) increasing the child element.