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JRF Working families hit living standards ceiling under Universal Credit
Families with children who work full time could find themselves with less disposable cash than those who work part-time under Universal Credit, according to a new report for the independent Joseph Rowntree Foundation (JRF).
The report is the first detailed look at how Universal Credit (UC) will affect take home pay once childcare costs have been taken into account. It assessed whether UC, being introduced from this year, will meet its central aim of making work pay, and enable low earning families to reach a minimum acceptable living standard.
It found that families with children will hit a ceiling where, despite working more hours, the steep withdrawal of UC means their disposable income after childcare costs fails to increase, or even falls. In some cases, families will be worse off working full-time than part-time.
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