Study finds 2 million people will lose £1,000 a year with Universal Credit

According to a study by the Institute of Fiscal Studies (IFS), the people who will see the biggest losses include self-employed workers and families on lower incomes with little savings.

Universal Credit is designed to merge several benefits which were previously paid to claimants separately, including job seekers allowance and child tax credit.

One of the authors of the IFS’s research note, Tom Waters stated, “The biggest losses experienced as a result of the switch are mostly down to a small number of specific choices the government has made about universal credit’s design.”

With the new rules regarding Universal Credit payouts, the IFS has found that 11 million people will lose or gain financially, with 1.6 million gaining by more than £1,000, and 1.9 million losing at least that much.