Women, ethnic minorities and low-income families will be hit the most by Universal Credit cuts

Old Women With Money

Low income families, women and ethnic minorities will be worse off because of cuts to Universal Credit, a new report has stated.

The Universal credit cuts come despite tax changes and a higher living wage.

According to research on behalf of the Joseph Rowntree Foundation (JRF), by 2022, one working-parent families will lose more from cuts to the benefits system than they gain from increases to the living wage.

However, The Women’s Budget Group (WBG), claimed women and people from ethnic minorities would be “hardest hit” by changes to Universal Credit.

Runnymede Trust also analysed the effect of cuts to the work allowance, alongside the Women’s Budget Group finding that over two million working women who claim Universal Credit would lose an average of £1,400 a year.

Black women are set to be £1,500 worse off annually, according to the data.

In addition, tens of thousands of Asian families with over three children could lose £1,370 due to the new two-child limit, the two companies said.

A DWP spokesman said: “The best way to help families improve their lives is by supporting parents into employment – under Universal Credit people are getting into work faster and staying in work for longer.

“There are record numbers of lone parents in work and Universal Credit supports this, offering parents unprecedented personalised support including paying up to 85% of childcare costs back.

“Since 2014 the number of people in absolute poverty has reduced by half a million, and average household incomes are at a record high.

“Children growing up in working households do better in school and are more likely to be in work in adult life.

Latest figures show there are over half a million fewer children living in long-term workless households since 2010 and around nine in ten children living with at least one working adult.

“With a near-record level of employment, we’re determined to build on this encouraging progress, and help more people improve their lives through work.”

The DWP added there was now a “near-record rate of women in work”, at 70.6 per cent, up about five percentage points from 2010.

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