Getting On: Universal Credit and older workers
28th May 2013
Britain is missing a crucial opportunity to encourage more older people into work because the government’s new flagship welfare reform delivers only mixed benefits for the age group.
While many older workers will be better off under Universal Credit (UC) – the system replacing tax credits and several other benefits from this year - others will see their financial incentives to work sharply reduced. In the most severe case, someone aged over 60 and earning £7 an hour could see their annual income from work fall by £1,640 – from £9,120 to £7,480.
The change results from the fact that UC abolishes the ‘hours rules’ that exist in tax credits, smoothing out the support people receive as they take on more hours of work. This change has different effects for different family types but in general it benefits people who work a small numbers of hours and reduces support for those working more hours.
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Date: 8 August 2012 | Author: Giselle Cory