For example, if you are on Universal Credit earning £12,500 and get a £100 pay rise, you’ll actually be just £25.16 better off as your extra earnings are taken away by income tax, National Insurance and then benefit reductions are applied. It's particularly painful for minimum wage workers on Universal Credit, with anyone working more than 30 hours a week hit with all three deductions and keeping just £2.05 for each extra hour of labour. [Have you been affected by the Universal Credit taper rate? “Universal Credit needs to work for working families. A DWP spokesman told Mirror Money said: “Universal Credit encourages people to take on more work by tapering off as they increase their earnings.”

Source: Daily Mirror November 08, 2019 08:12 UTC