Austerity cuts and working people

“… a couple with two young children, one working full-time and the other part-time on the national living wage, will lose more than £1,200 a year due to universal credit cuts.

Another example given is that of a single parent with two young children who starts work at 12 hours a week on the national living wage and will have an effective hourly wage of £4.18, as opposed to £5.01 before the cuts.

The authors detail the wider penalties for families due to the benefit cuts and other changes, saying those with four or more children will lose more than £4,000 a year overall, or £5,000 if they move to universal credit.

Single parents will be especially badly hit, the report said, with changes to universal credit leaving them on average £710 a year worse off. Parents of children with disabilities will also be disproportionately affected, it adds.

The report said: “The losses are alarming, and will damage the life chances of hundreds of thousands of children growing up under austerity.”

Overall, the study said, cuts to the existing benefit system since 2010 will push 700,000 children into poverty, after accounting for housing costs. The two-child limit for benefit payments alone will put 200,000 children in poverty once the system has been fully extended nationwide, the calculations suggested. …”

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