New DWP guidance confirms that families on tax credits face being moved to Universal Credit if there’s a change in their circumstances, say Labour.
Chancellor George Osborne partly reversed planned cuts to tax credits in the Autumn Spending Review last year, under substantial pressure from political opponents and even MPs from within his own party.
However, cuts to Universal Credit are set to go ahead and could result in thousands of households losing around £1,600 a year. Single parents could see their income slashed by as much as £3,000 a year, say Labour.
Commenting on the new guidance, Labour’s Shadow Work and Pensions Secretary, Owen Smith MP, said:
“These new guidelines confirm the chaos of what’s to come after the Tories failed to fully reverse their cuts to tax credits.
“With cuts to Universal Credit still going ahead, the Tories are creating a two-tier system that’ll see single parents £3,000 a year worse off compared to being on tax credits.
“Working families who receive tax credits will clearly want to do everything they can to avoid being moved onto Universal Credit.
“However, this new guidance shows the Tories’ will move families over as soon as they can, meaning if someone on tax credits becomes pregnant or gets married they could lose thousands of pounds a year under the new system.
“It’d be a lot simpler and a lot fairer if the Tories listen to Labour and reverse these cuts in full before the chaotic injustice of them becomes even clearer come April.”