Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, how universal credit is calculated for people who (a) are in work and (b) would formerly have claimed working tax credits; and what comparative assessment he has made of the level of entitlement of such people to (i) universal credit and (ii) those benefits which universal credit has replaced.

Under the legacy system £2.4 billion of welfare benefits did not get paid at all because claimants could not navigate the complexity of the system. Universal Credit is putting this right, ensuring this money goes to 700,000 claimants who need it.

Universal Credit replaces six benefits with one, to simplify the system and make work pay. As a result, people claiming Universal Credit move into work faster, stay in work longer and spend more time looking to increase their earnings. Universal Credit also provides more help with childcare costs, a dedicated Work Coach, scraps the 16-hour ‘cliff edge’ and the prohibitive tax rates should someone start work. When it is fully rolled out we expect Universal Credit will boost employment by 200,000, lifting people out of poverty and generating £8 billion in economic benefits every year.

Universal Credit includes a Standard Allowance and separate elements to provide support for housing costs, children and childcare costs and support for disabled people and carers.

Many claimants will have higher entitlements under Universal Credit but for those who do not, anyone on existing benefits or tax credits whose circumstances remain the same will not lose out in cash terms when claiming Universal Credit, as part of the managed migration process. These claimants will be given transitional protection to avoid cash loss at the point of change.