Income boost call for workers on UC

Citizens Advice calls for change to cut poverty

LOW-PAID workers on Universal Credit should be given a “work allowance” to boost their income, campaigners say.

Citizens Advice Scotland believes the move would reduce in-work poverty and reward benefit claimants for seeking employment.

CAS also believes payments should be raised for people who are actively looking for jobs.

About 480,000 people in Scotland were on UC in August, but it was cut by £20 a week by the Tory Government.

A key element of the social security payment is the “work allowance”, which is the amount someone can earn before their UC is clawed back.

It is currently set at £335 a month for people who receive housing costs as part of their UC, and £557 for those who do not.

The allowance is not available to everyone on UC – a two-tier system critics believe hits people without children. Although the UK Government recently made the allowance more generous for eligible claimants, CAS said it should be extended.

CAS’s David Scott said: “There is real potential for Universal Credit to reduce in-work poverty but extending the work allowance to everyone needs to be a part of that.”

Labour MP Ian Murray said: “Universal Credit is not fit for purpose. Labour are clear that it must be reformed and replaced with a truly fair system.”

The UK Government said: “We’re providing extensive support to those on the lowest incomes, including putting an average of £1000 more per year into the pockets of working families through changes to the UC taper rate, and increasing the minimum wage.”