This report looks at the interaction between taxes and benefits, focusing on two case studies to highlight how Universal Credit supports families.
We look at how their incomes change as their earnings increase, and find that:
- Out of work support under Universal Credit is inadequate
For families with two children living in an expensive part of the country, the Benefit Cap leaves them with £18,000 (40%) less than their needs as assessed by the benefit system.
- In work support helps more people than you might think
200,000 to 300,000 higher rate taxpayers are potentially eligible for Universal Credit. This is caused largely by the high cost of housing and childcare.
