A woman has revealed she has been receiving Universal Credit for six years, arguing that entering the workforce "simply isn't worth it" financially for her.
The Financial Reality of Benefits vs Work
Erica Crompton told The Telegraph that her personal situation demonstrates she is better off claiming support from the Department for Work and Pensions (DWP) than having a salary taxed. She first signed onto the benefits system in 2009 while on minimum wage and dealing with declining mental health, initially receiving Jobseeker’s Allowance and Housing Benefit.
She was moved onto the Universal Credit system in 2019. Her current monthly payment is £1,027, which includes £381 for rent on a shared ownership property and £200 for providing over 35 hours of weekly care for her wheelchair-using partner.
"I'd End Up With Less Money"
Detailing her finances, Erica stated: "Last year I took home around £10,100 in earnings, and £12,324 per year in Universal Credit – that’s a total of £22,424, untaxed, before any expenses, and without deductions for my student loans on my two degrees."
She added, "Most of the work-from-home jobs that I could get don’t pay much more than this – and they are taxed. I’d end up with less money every month if I wasn’t also on Universal Credit." Erica, who works occasionally as a journalist, shared her experience as the UK's welfare system prepares for significant changes under the new Labour government.
A Welfare System Under Review
Work and Pensions Secretary, Labour MP Pat McFadden, recently addressed a cross-party committee, indicating that future cuts to benefits have not been ruled out. He told MPs, "I have only been in the job for three months, and if I start ruling things out it will just close doors in the future, so I am not ruling anything out."
In response to the ongoing debate, a DWP spokesperson said: "We want a welfare state that is there for those who need it and supports people into work, while delivering fairness to the taxpayer. That’s why we’re launching the Timms Review to make sure PIP is fair and fit for the future, which is being co-produced by disabled people and their representative organisations."
