Plans to introduce a single universal credit to replace all existing benefits were revealed by the government last week. This will involve the introduction of a new single rate at which people's benefits are withdrawn to take account of earnings, which could disadvantage some families, according to Family Action.
Sam Royston, policy officer at the charity, said families in work paying income tax, national insurance and receiving working tax credits - but no other means-tested benefits - currently keep 30 pence in every pound they earn for any extra hours worked.
But under the new system, these families will retain only 24 pence in the pound.
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