image source, UK Parliament / Roger Harris
Government Decision to remove extra weekly payment of £ 20 to millions of Universal Credit (UC) applicants dominated discussions between Boris Johnson and Labor leader Keir Starmer over the Prime Minister's Questions.
This follows criticism from the secretary of the Work and Pensions Therese Coffey who said the £ 20 cut would only mean " two hours 'of extra work each week "for applicants.
Keir Starmer: " A single parent working minimum wage, already working full time, would have to work more than nine hours a week just toget the money "
This calculation was originally made by the Resolution Foundation .
The minimum living wage for people over 23 is £ 8.91 per day. 'hour.
Income tax would take £ 1.78 off and national insurance another £ 1.07.
For people on UC who are working (around 40% of claimants), the more they earn - above a work allowance - the more Their benefit decreases. For each additional pound earned, the benefit payment is reduced by 63 pence.
This would almost certainly apply to this full-time worker, taking off £ 3.82, bringing the hourly total to £ 2.24. This means they would have to work around nine hours to earn £ 20.
The government responded to this analysis: “Many applicants are entitled to a work allowance, which means [they]… conserve more of what they earn. at around £ 20. "
The government talks about claimants eligible for a work allowance, but who have not used everything. However, it has not specified how many people would fall into this category.
Not everyone is eligible for a working allowance - it is only those with children or those with limited working capacity.
Boris Johnson: " Every recipient of Universal Credit would lose their labor title benefits because he wants to abolish universal credit "
The PM has made this claim many times - but it 's misleading.
The manifesto Labor of 2019 did indeed pledge to abolish the UC, but it was clear that he would replace it with aalternative em system, so that claimants do not lose their benefits completely.
He also said the party would not remove UC immediately telly, but would make emergency changes to the system so that it works best during the development of the new perk.
image source, British Parliament / Roger Harris
Ian Blackford (SNP): 'When you take the universal credit cuts and you take the national insurance increase ... the average nurse will lose £ 1,736
We've seen several estimates the amount of CU reduction and and the government's planned hike in the National Insurance (NI) rate could cost workers dearly, but this one comes from the SNP's leading ter Westmins is the highest.
It comes from an Action for Children report , but their figure not only covers these changes but "past benefits have declined over the past decade ". So this is an overestimate for UC and NI only.
UC losses are relatively easy to work with - it's £ 20 per week, or £ 1,040 per year.
But the 1.25 pence per pound increase in national insurance, which goes into effectin April, clearly depends on how much people earn.
Someone who earns £ 20,000 a year will pay an extra £ 130 next year, while someone who earns 30,000 £ will pay an additional £ 255.
Labor has published a study suggesting that a newly qualified nurse in Group 5 would lose £ 1,143 in total - that's the loss for the next year after factoring in a pay rise in line with CPI inflation.
Boris Johnson: "For the first time in decades, wages go up by 4, 1% of what they were before the pandemic. "
The Prime Minister uses a figure from February when the Office for National Statistics (ONS) estimated annual growth in the regular average salary of 4.1%, or 3.3% when adjusted for inflation.
Since then, wages have not stopped increasing and are now up 6.8% compared to last yeare. 4.5% corrected for inflation.
In April, the government raised the national living wage by 2.2%, to £ 8.91 per year per hour, the equivalent of an additional £ 345 each year for someone working full time .
The Office for National Statistics suggests, however, that there is more to the payroll figures.
In particular, during the pandemic, there has been a decline in the number and proportion of paid jobs, which means that average incomes have increased.
Shortages of labor can also be the source of upward wages. For example, according to the Road Haulage Association, the UK is short of around 100,000 heavy truck drivers. Meanwhile, the wages of heavy truck drivers have increased by around 10%.
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