
Families with children risk ending up worse off by working full time than if they cut back their hours under the Government's flagship welfare reforms, a report has warned.
They will hit a "ceiling" where despite working more, their disposable income after childcare costs will fail to increase or even fall in some cases as their benefits are steeply withdrawn, the Joseph Rowntree Foundation (JRF) found.
The report was commissioned to probe whether Universal Credit, which combines six different benefits and tax credits into one simplified payment, will achieve its goal of making work pay. It suggested that people without children will generally have stronger incentives to work.
Moving into "mini jobs" of up to 10 hours a week would see families better off under the shake-up, but working beyond this threshold results in a slow climb towards a higher disposable income, it found. Families could end up "trapped" on inadequate funds to get by.
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