Universal credit is NOT an incentive to work for the single able-bodied: 63p of every pound earned is clawed back
Focussing on undue delays causing hardship, highlighted on this site, The Times and the FT in 2017 asked ‘is universal credit – to date – a disaster?’
The FT today says “Universal credit is a plum example of how not to reform public services. The theory was broadly sound: the simplicity and real time data of the universal credit would ensure people were always better off in work. The reality, however, has proved calamitous”.
Conservative and Labour politicians, such as Jacob Rees-Mogg, Johnny Mercer, Gordon Brown and Frank Field, are now demanding that the government reconsiders the national rollout.
John Major has warned that UC could lead to a repeat of the poll tax debacle of the early 1990s, which saw riots against the then Conservative government.
A reader with a postgraduate degree was asked to look at these sections on a government-recommended benefits calculations site:
Work allowance for Universal Credit (Ed: able-bodied & childless need not apply)
If you/and or your partner are in paid work, you might be able to earn a certain amount before your Universal Credit is affected, this is called the work allowance. Your work allowance will depend on whether you are single or part of a couple and whether your Universal Credit includes amounts for housing costs, children and/or limited capability for work. The table below shows the different levels of monthly work allowance.
The Universal Credit earnings taper is a reduction to your Universal Credit based on your earned income. The taper rate sets the amount of benefits a claimant loses for each pound they earn. The earnings taper rate is currently 63%. This means for every pound you earn over your work allowance your Universal Credit will be reduced by 63 pence. To work out the earnings taper that applies to your award:
- Take your total monthly earnings figure after tax, National Insurance and relevant pension contributions have been taken off
- Deduct your monthly work allowance, which is the amount you can earn without your benefit being affected (if you are eligible for one)
- Apply the taper rate by multiplying the remaining earnings by 0.63
This is the amount that will be taken from your Universal Credit maximum amount when calculating your award.
Even the post-graduate reader found these instructions ‘far from simple’ and in no way producing a simpler and more effective system.
Esther McVey, the work and pensions secretary in charge of the scheme, confirmed last week that families will be poorer under UC. She did not deny reports that millions of families could be up to £200 a month worse off when it is fully rolled out.
The chairman of the Commons work and pensions select committee has described the project – running well behind schedule – as a “shambles, leaving a trail of destruction” and in its assessment this year, the National Audit Office doubted whether the system would ever deliver value for money.
The current Universal Credit system is NOT ‘fit for purpose’
“Jeremy Corbyn is perfectly right to relate this week’s Manchester terrorist atrocity to British foreign policy in the Middle East.”
A Moseley reader draws attention to the thoughts of Simon Jenkins in the Guardian today. A summary:
Jenkins asserted that Jeremy Corbyn is perfectly right to relate this week’s Manchester terrorist atrocity to British foreign policy in the Middle East.
He reminded all that Tony Blair, Gordon Brown and David Cameron clearly stated that they were spending soldiers’ lives toppling regimes in Afghanistan, Iraq and Libya at enormous expense in order to “to prevent terrorism in the streets of Britain”.
In the Andrew Neil programme this evening Corbyn added that Boris Johnson, the Foreign Affairs Select Committee – and MI5 had also expressed these views ‘on record’!
Their aim was to suppress militant Islam but Jenkins points out that when their intervention clearly led to an increase in Islamist terrorism, we are entitled to agree with Corbyn that it has “simply failed”.
We committed armed aggression against sovereign peoples who had not attacked us
Regimes were indeed toppled. Tens of thousands died, many of them civilians every bit as innocent as Manchester’s victims. Terrorism has not stopped.
Militant Islamists are indeed seeking to subvert the west’s sense of security and its liberal values. But the west used the language of “shock and awe” in bombing Baghdad in 2003, giving the current era of Islamist terrorism a cause, a reason, an excuse, however perverted.
Jenkins ends: “Islamist terrorism is related to foreign policy. However hateful it may seem to us, it is a means to a political end. Sometimes it is as well to call a spade a spade”.