Work and pensions secretary fears chancellor’s proposals to slice spending to partially fund anticipated tax credits U-turn could undermine scheme’s effectivenessGeorge Osborne is at loggerheads with the work and pensions secretary over proposals to slice spending on universal credit by more than £1bn a year. The chancellor is considering the move – which Iain Duncan Smith fears could drastically undermine the effectiveness of universal credit – as a means of partially funding his anticipated U-turn on tax credits.
The savings would be achieved by changing the taper rate that applies to the unique benefit. Currently it is set at 65% – meaning that for every extra £1 claimants earn above a threshold, they lose 65p – but Osborne is looking at a proposal to increase this to 75%.
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Source: theguardian.com