The report by the charity Gingerbread found the rising costs of childcare and housing, combined with the way Universal Credit is calculated, means that working longer hours will make only a negligible difference to net household income for many single parents.
The study, which was conducted by the Centre for Research in Social Policy at Loughborough University, highlights how families will be affected when the system is launched next year, based on an analysis of how projected Universal Credit entitlements compare to families’ needs.
“The government has been very clear in its commitment that work will always pay under Universal Credit and that every additional hour of work will always pay,” said Caroline Davey, director of policy at Gingerbread.
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