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Credit crunched: Single parents, universal credit and the struggle to make work pay

Major new research from Gingerbread

Gingerbread has published a major academic report that looks at the impact on single parent families of the government’s flagship welfare programme, universal credit. We are concerned that, far from achieving the reform’s stated goal of “making work pay”, many single parents could actually lose out in cash terms under the new system.

Universal credit, which is being gradually introduced across the country from this October onwards, is rolling together six separate benefits into one payment. This is being done in order to simplify the system. The government has emphasised that this new welfare scheme is being designed to ‘make work pay - at each and every hour’,: encouraging people to move into work, or increase their working hours.

Our research suggests that for many single parents, work still won’t pay under universal credit. In particular we have found that:

  • As a group, single parents face a real-terms cash loss under universal credit
  • Universal credit does achieve one of its aims: single parents who aren’t working will be better off if they move into work than is currently the case
  • But of all household types, working single parents are the worst affected when it comes to benefitting from working more hours, meaning many families will be trapped in low hours, low paid jobs.

But, we didn’t want to leave our analysis there.

Our briefing, based on this new research, includes clear, costed recommendations on ways that the government could improve the scheme, and truly make work pay for single parents.

You can read the full report here

Comments

Jana1079585 avatar
Jana1079585
08 October 2014 16:32

Nasty party, changing child maintenance services which do not work for single parents and now universal tax credit. Which people vote for this nasty party?

Janine_9539 avatar
Janine_9539
16 November 2013 14:11

Wonderful to read a clear well-evidenced non-emotive proposal for how things could be improved. At last I have seen my own problem clearly articulated; that doing a part-time job is very helpful, but to earn more is actually likely to make me worse off. Seeing it in this report somehow relieves the guilt I feel for being so unmotivated.

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