Universal Credit could leave many worse off - unless you take this simple step
A million workers in low-paid jobs need to act fast or risk losing out on up to £14,000 in Tax Credits.
This week, the Government began gradually rolling out the Universal Credit reforms across the UK, which will result in significant cuts to work allowances.
But as trade union Unison points out, anyone who has registered for in-work benefits before Universal Credit arrives in their area will see their future payments protected – provided their circumstances don’t change.
It estimates that there are currently one million eligible low-income workers who have yet to do so. If you’re one of them, it’s vital you register soon or you could be left massively out of pocket.
How much is it worth?
According to Unison, a couple aged over 25 with no children or disabilities earning £7.20 an hour and working 30 hours a week would be £53.86 a week better off under working tax credit than they would be under Universal Credit.
Assuming their circumstances don’t change over the next five years – the timeframe over which Universal Credit is being rolled out – this works out to an extra £14,000 in payments, says Unison general secretary Dave Prentis.
“If low-paid workers sign up to Tax Credits, not only will they be better off now, their income will also be protected in future, unless there is a significant change in their circumstances.”
“Unison will continue to press the Government to reverse the cuts to universal credit work allowances and to end the second class arrangements that start today for many low-income families.”
Don’t miss out: read our complete guide to claiming Tax Credits
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