Tax Credit cuts – Just the beginning – There’s worse to come

" Your Universal Credit may be sanctioned if your earnings drop voluntarily without good reason, or because of misconduct."[1]

If more Conservative MPs knew that the current Tax Credit cuts are only the start and that much worse is to come for low paid workers – would they still support them?

“The last new claims to legacy benefits and tax credits will be accepted during 2017” DWP Minister Mark Harper

Already passed in legislation, changes to in-work benefits under Universal Credit dwarf the current Tax Credit cuts. With a 65% taper rate and conditionality (with sanctions) for all claimants earning less than £12,0000/yr Universal Credit eliminates in-work benefits for huge numbers or of workers.

“If your benefit unit receives earnings below the conditionality earnings threshold [……..] your earnings need to increase so that you can reach your conditionality earnings threshold, for example by:

    • Increasing your working hours
    • Increasing your rate of pay
    • Finding an additional job
    • Moving to a different job with higher earnings”[1]

Further changes were announced in the Summer Budget ; the earnings threshold is cut again from £3,850 to £2,304 and is  abolished for single claimants. This legislation is on the way….

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2 thoughts on “Tax Credit cuts – Just the beginning – There’s worse to come”

  1. I never imagined that the Nastier Than Ever Party though mean and greedy would stoop to this level of punative sanctions. Absolute disgrace to the human race

    Liked by 1 person

    1. Everyone must have been asleep when the Tories were slipping a lot of the legislation through & who knows what Labour were doing. Some of it was being approved 3 years ago.

      Like

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