Universal Credit: 2 million will be better off refusing work

Despite David Cameron’s promise to ensure that employment “always pays” more than benefits, the government admitted “there is a risk” that working women will decide they should give up their jobs when Universal Credit is introduced.

Couples with children are likely to be among the hardest hit by the changes to the benefits system, which are being rolled out across the UK from next year, according to the Department for Work and Pensions.

The warnings result from the fact that the more people work, the more they pay in tax and national insurance, and the more they will lose in means-tested benefits under the plans.

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