Delyn MP David Hanson has joined Usdaw activists in the House of Commons in their campaign to persuade the Government to change Universal Credit rules that mean working people in Flintshire will only be allowed to keep 24p in every extra pound they earn.
Mr Hanson backed the campaign after evidence from USDAW showed the government’s policy would result in a 76% claw-back of additional earnings from workers because of Universal Credit; an unfair and a massive disincentive for people to look for ways to increase their income and work their way off benefits altogether.
David Hanson MP said: “Whilst I support the principle of Universal Credit which should make it easier for people who are unemployed to move into some work, 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 in Flintshire will be clobbered by this 76% marginal deduction rate for taxpayers on Universal Credit. That will put people off from working longer hours, and potential second earners from working at all, perpetuating the poverty trap for families on low pay and slowing the economy across Flintshire.”
John Hannett – Usdaw General Secretary says: “We are grateful for the support of Delyn MP. Whilst Universal Credit affects households differently, many of our members working long hours are going to be worse off when they are transferred onto Universal Credit. That loss of income is compounded because they will find it incredibly difficult to make up the shortfall by working longer hours. That is why the claw-back from additional earnings is incredibly unfair, trapping households in poverty and creating a disincentive to work. So we want the Government to ensure that work does pay by lowering the claw-back to 55p in the pound.”