How The UK Welfare System Is Designed To Keep The Poor Poorer
Once on Universal Credit, the odds are stacked against families to find their way free of debt. Last week, the chancellor proudly stated the “taper rate” on universal credit (how quickly the benefit is withdrawn according to a claimant’s earnings) will drop from 65% to 63% – effectively meaning the low waged can hold on to more of what they earn. But what he didn’t say was that if a single parent such as Kayleigh worked 150 hours a month, that would be worth just an extra £26. To put that in the bigger picture, Kayleigh could find a job tomorrow, and after taxes and the withdrawal of universal credit, she would keep barely a third of her wages. Compare that to someone in the richest 1%, who according to the Equality Trust’s calculations, keeps 53% of their additional earnings.
Excerpted from: Kayleigh is on universal credit. Her first payment arrives next year | Frances Ryan | Opinion | The Guardian https://www.theguardian.com/commentisfree/2016/dec/01/universal-credit-first-payment-delay-christmas