Families thousands of pounds worse off after years of cuts, study finds

Austerity Generation report finds cuts to tax credits and universal credit have damaged their role in rewarding people for working

Seven years of cuts to tax credits and universal credit have hugely eroded their role in supposedly rewarding people for working, leaving many families thousands of pounds a year worse off, a study has concluded.

Ministers’ promises that the systems would benefit families for taking on more work had effectively been broken because of the cuts, according to the report by the Child Poverty Action Group (CPAG) and the Institute for Public Policy Research thinktank.

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