Universal Credit

Work and Pensions written question – answered on 15th January 2014.

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Photo of William Bain William Bain Labour, Glasgow North East

To ask the Secretary of State for Work and Pensions if he will make an assessment of the effect on the projected employment rate of female workers (a) with children and (b) without children of freezing the work allowance in universal credit in each of the next three financial years.

Photo of Esther McVey Esther McVey The Minister of State, Department for Work and Pensions

Under universal credit, the amount someone can earn in work before their benefits are reduced is much more generous than under the existing system, where people can be effectively penalised for moving into work. The changes included in the autumn statement 5 December 2013, Hansard, columns 1101-1113, will help ensure that overall benefit expenditure is sustainable, while still maintaining a better targeted and more generous system under universal credit.

Universal credit will encourage claimants to move into employment. It is estimated that up to 300,000 individuals will move into work as a result of universal credit, through improved financial incentives, increased simplicity of the system and increased conditionality.

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