Race Matters

Universal Credit is failing women and ethnic minorities

Universal Credit is failing those who are only just about managing, with women and black and minority ethnic (BME) households hit hardest of all, reveals analysis out this week.

Low-paid workers bear the brunt of austerity measures according to a review ahead of the budget by the Runnymede Trust and the Women's Budget Group.

Click here to download the full press release, including data graphs

The analysis, which is collected on this Intersecting Inequalities website, looks at the distributional impact of a series of changes to Universal Credit announced in 2015 and 2016. These include the cut to the work allowance, the two-child limit, the freeze in payment levels, removal of the family element and the change in the taper rate.

The analysis shows that:

- By April 2021 employed individuals who live in households claiming universal credit will be £1200 a year worse off than they would have been under the original UC system. 57% of the loss is due to the cut to the work allowance. Claimants not in work will be around £500 a year worse off.

Women will lose more than men: 2.2 million female claimants in employment would lose an average of £1,400 a year and 3.6 million female claimants not in employment would lose an average £600 a year .

Black employed women are set tol ose the most, around £1500 a year

- Families with children will be worse off than households without children. 760,000 families with three or more children will be on average £2,600 a year worse off

The changes in Universal Credit come on top of a series of other cuts and changes to the benefit and tax system which have disproportionately affected women, and black and minority ethnic (BME) women in particular.

For more information click here to download the full press release. For interviews contact Lester Holloway: communications@runnymedetrust.org
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