Earlier this month CYP Now reported that campaigners feared government plans to "make work pay" could discourage low-income families from working extra hours, undermining efforts to reduce child poverty.
A study by the charity, which provides services to disadvantaged and socially isolated families, has analysed government figures to reveal that the universal credit will disadvantage a significant number of low-income families.
The Universal Credit: Marginal Returns? found the problem will affect the large group who currently receive some tax credit but also pay tax and national insurance.
The problem arises in the "marginal deduction rate" - the deductions incurred on each additional £1 earned.
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