Employment: Social Security Benefits

(asked on 20th February 2023) - View Source

Question to the Department for Work and Pensions:

To ask His Majesty's Government, further to the press statement by the Department for Work and Pensions on 27 January 2022, what assumptions were made (including regarding family type) to inform the statement that "people are at least £6,000 better off in full time work than on benefits".


Answered by
Viscount Younger of Leckie Portrait
Viscount Younger of Leckie
Parliamentary Under-Secretary (Department for Work and Pensions)
This question was answered on 6th March 2023

The actual amount an individual could gain from work depends on wage rates, the number of hours worked and family circumstances, such as having children, and whether the claimant receives the UC housing element.

The main assumption the Department used was that people earn the minimum wage of £9.50 an hour and that full time work is 35 hours a week. The Department’s publication Completing the Move to Universal Credit (publishing.service.gov.uk) shows that:

  • A single claimant with housing costs and no children would have a net income of nearly £7k more a year (if they did not have housing costs the gain would be higher)
  • A single claimant with 2 children with housing costs would have a net income of over £9k a year more
  • A couple with 2 children with housing costs (if they both worked full time compared to both not working) would have a higher net income of over £17k a year.
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