Posted: 16 April, 2014 at 11:42 am

John calls for change to Universal Credit rules

John calls for change to Universal Credit rules

John Healey MP is supporting Usdaw’s campaign to persuade the Government to change Universal Credit rules that mean working people will only keep 24p in every extra pound they earn.

Shopworkers trade union leader John Hannett believes the 76% claw-back of additional earnings from workers on Universal Credit is unfair and a disincentive for people to look for ways to increase their income and work their way off benefits altogether.

Mr Healey said: “Usdaw are right to highlight this problem with the Government’s Universal Credit and I hope ministers will listen and act before the scheme is fully rolled out.

“Many working people will be clobbered by this 76% marginal deduction rate for taxpayers on Universal Credit.

“That will put off claimants from working longer hours and potential second earners from working at all, perpetuating the poverty trap for families on low pay.”

The MP attended an event in Parliament and met Usdaw members, including Carrie Fineran (pictured) who will be thousands of pounds worse off under Universal Credit.

In general, households on low hours of work will be better off on Universal Credit and those working 30 hours a week or more on a low wage will be considerably worse off. People can check whether they will lose out at www.entitledto.com.

Mr Healey added: “I support the principle of Universal Credit, which should make it easier for people who are unemployed to move into some work. But I want the Government to reduce the net earnings claw-back to 55%, to ensure extra work always pays and to support hard-working families.”