Families hit by benefits clash
Payments collision inflicts ‘tax rates’ of at least 80%
Some families could end up facing effective tax rates of at least 80% next year due to a ‘collision’ between Universal Credit (UC) and child benefit, according to one think tank
FAMILIES are paying the price of Tory failures with a “collision” between universal credit (UC) and child benefit leaving some facing effective tax rates of at least 80 per cent, research reveals today.
Analysis by the Resolution Foundation has found that a growing number of families with children in England and Wales will find their pay packets hit hard in 2023 due to the clash of policies between the two welfare systems.
The two systems for withdrawing child benefit and UC were originally intended to support distinct parts of the population, according to the think tank.
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