Citizen’s Advice has revealed that single disabled people could be more than £300 worse off on Universal Credit compared to the previous system.
In a report from the organisation, published last Friday, they reveal that working disabled people could find themselves more than £300 worse off due to “flaws” in the system. Universal Credit is designed to incentivise people to work, rather than supporting disabled people who are already in work. Therefore, to receive targeted in-work support, a worker must be assessed as not fit for work.
Citizens Advice’s report also showed that working disabled people who do get the Work Allowance support could find themselves £200 worse off every month due to weaker support from Work Allowance, compared to support disabled workers receive in Tax Credits, and disabled people working 12 hours a week may find themselves over £100 a month worse off due to benefit reductions.
Due to the removal of Severe Disability Premium, people with a carer who are unable to work and made to make a new Universal Credit claim may find themselves up to £180 worse off.
The charity found that some improvements had been made by removing “cliff edges,” where claimants are losing large chunks of income for working a few extra hours, but add that the government must improve working incentives and financial help for disabled people.
Gillian Guy, the chief executive of Citizens Advice, said: “Some disabled people will be unfairly disadvantaged under Universal Credit.
“Working disabled people need to prove they are unfit to work to get support meant for them. This goes against the government’s aim to support a million disabled people into work.
“Even when disabled people do get the support meant for them under Universal Credit, whether they are in work or not, they can be hundreds of pounds worse off a month than the previous system. This is money people desperately need to cover their bills.
“The government needs to address this and increase the financial support disabled people can receive under Universal Credit.”Get your copy of UNITE Magazine