Supplementary written evidence submitted
by Family Action
ILLUSTRATION OF POSSIBLE IMPACT OF TREATMENT
OF CHILDCARE UNDER UNIVERSAL CREDIT
Lone Parent, two children, £100 rent, £20
council tax. Earnings £15,000pa (working 30 hours per week),
no childcare.
CURRENT SYSTEM
Tax Credits = £123.01
HB = £23.07
CB = £33.70
Net work = £235.44
Total = £415.22
UNIVERSAL CREDIT
Max UC = £284.29
Disregard (reaches floor) = £2340 (pa)
Net earnings = £235.44
excess income = 12,242.88 - 2,340 = £9,902
9,902*0.65 = £6,436.3 (£123.78 pw)
284.29 - 123.78 = £160.51
UC = £160.51
Earnings= £235.44
CB = £33.70
Total = £429.65
Lone Parent, two children, £100 rent, £20
council tax. Earnings £15,000pa, (working 30 hours per week)
childcare £200pw.
CURRENT
Tax Credits = £282.57
Housing Ben = £49.36
CTB = £4.42
CB= £33.70
Net earnings = £235.44
Total = £605.49
UNIVERSAL CREDIT
(Assuming 70% childcare element integrated into UC)
Max UC = £284.29 + 140 (70% cccs) = £424.29
Disregard (reaches floor) = £2,340 (pa)
Net earnings = £235.44
excess income = 12,242.88 - 2340 = £9,902
9,902*0.65 = £6,436.3 (£123.78 pw)
424.29 - 123.78 = £300.51
UC = £300.51
Earnings= £235.44
CB = £33.70
Total = £569.65
January 2011
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