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 impact of the freezing of the work allowance within universal credit in each of the next three financial years, allowing for inflation, on the annual real incomes of people in each income decile and classed as (a) lone parents with children, (b) single people in work, (c) couple households with children where one adult is in full-time work, (d) couple households with children where one adult is in full-time work and the other in part-time work, (e) couple households with children where both adults are in full-time work, (f) couple households with two children where both adults are in part-time work, (g) couple households without children where one adult is in full-time work, (h) couple households without children where one adult is in full-time work and the other is in part-time work, (i) couple households without children where both adults are in full-time work and (j) couple households without children where both adults are in part-time work.

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

Once fully rolled out, 3 million households gain on average £174 per month (in 2012-13 prices) from universal credit after taking account of the work allowance freeze. Transitional protection will ensure that there will be no cash losers under universal credit, providing their circumstances remain the same.

Impacts of the groups requested by income decile are not available due to sample size restrictions, however the following table shows the numbers of gainers by family type and employment status.

Million
  Single no children Single with children Couples no children Couples with children Total
One person in work 0.4 0.5 0.2 0.8 22.0
Out of work 0.5 0.1 0.1 0.1 20.7
Dual earners n/a n/a 1- 0.3 0.3
Total 20.9 20.7 0.3 1.2 23.0
1 Sample size is too small. 2 Totals may not sum due to rounding.

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