3 thoughts on “Coalition welfare reform will make work pay – but still not by enough”

  1. Posted 30/04/2013 at 17:51 | Permalink

    “The combination of income tax, national insurance and the withdrawal of universal credit will create an implicit marginal tax rate of 76 per cent”

    It’s worse than that. The government has conveniently removed Council Tax Benefit from Universal Credit, because it now isn’t national but is set at local levels. However a common reaction of local authorities to the cut in overall council tax support levels and the requirement that they protect pensioners completely, is to increase the ‘Taper Rate’ at which Council Tax Support is withdrawn when a claimants earns more money from 20 to 25p in the pound.

    See article here: http://doshandnosh.com/2013/04/the-daftest-cut-of-all/

  2. Posted 01/05/2013 at 10:10 | Permalink

    Good point, thanks Sara.

  3. Posted 01/05/2013 at 10:31 | Permalink

    Another regrettable aspect of Universal Credit is that it introduces severe disincentives for saving for working households. By contrast with tax credits, UC recipients will be subject to a savings cap of £16k and payments will be reduced on a sliding scale for household savings between £6k and £16k.

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