Almost 2m people will lose £1,000 a year with universal credit – study
Almost 2 million people will lose more than £1,000 a year following the switch to universal credit, with those claiming disability benefits the worst affected, according to research by a leading thinktank.
Self-employed workers on below average incomes and low-income families with little savings will also be among the biggest losers, the Institute for Fiscal Studies study concluded, as the government aims to complete one of the biggest overhauls of the benefits system since the introduction of tax credits in 2003.
The benefit clawbacks under the new system, which will affect around half of claimants, are expected to lead to a huge outcry from anti-poverty charities who have accused ministers of sanctioning more than a decade of austerity for some of the UK’s most hard-pressed households.
The IFS said 11 million adults would lose or gain under new rules governing UC payouts, with 1.6 million gaining by more than £1,000 a year and 1.9 million losing at least that much.
About 4.2 million will be at least £100 per year better off than under the current system and 4.6 million will be at least £100 per year worse off after transitional protection expires, the IFS said.
