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Government failing with Universal Credit as people are now more worse off with Tax Credit debt

Margaret Greenwood MP, Labour’s Shadow Work and Pensions Secretary, responding to figures published today which show Universal Credit claimants with Tax Credit debts is well over a quarter, said “The government claims nobody will be worse off when they transfer to Universal Credit, but many people who move on to it see their support cut and repaying such high levels of Tax Credit debt, along with other deductions, can push people into severe hardship.

“People are often not even aware of their Tax Credit debt at all until they claim Universal Credit and the government’s own research shows that well over half of people transferring from Tax Credits struggle to cope financially.

“Our social security system must protect people from poverty; under this government, it is failing. The government must stop the rollout of Universal Credit now.”