The single benefit is due to replace most means-tested benefits and tax credits for working-age adults. But the IFS report says that it will create 'winners and losers'. On average, couples with children will gain more than childless couples, who in turn will gain more than single adults without children. Lone parents will lose in the long run.
The report found that the Universal Credit will strengthen the incentive to work for those who have the lowest incentive to work under the current tax scheme, because earnings will reduce the credit award at a rate of 65 per cent. This is a much lower rate than under the current set of means-tested benefits.
Register now to continue reading
Thank you for visiting Nursery World and making use of our archive of more than 35,000 expert features, subject guides, case studies and policy updates. Why not register today and enjoy the following great benefits:
What's included
-
Free access to 4 subscriber-only articles per month
-
Unlimited access to news and opinion
-
Email newsletter providing activity ideas, best practice and breaking news
Already have an account? Sign in here