Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Universal credit tax rate hindering employment efforts, says Blick Rothenberg

by July 17, 2024
July 17, 2024
Universal credit tax rate hindering employment efforts, says Blick Rothenberg

The new Government must address the 55% effective tax rate on Universal Credit recipients if it aims to reduce unemployment.

That’s according to Robert Salter, Technical Director at audit, tax, and business advisory firm Blick Rothenberg, who highlighted the issue in light of the recent King’s Speech, where the Government committed to focusing on employment. He stated, “While the Government’s commitment to getting the unemployed and under-employed back into the workforce is commendable, the practical implementation of this policy remains to be seen.”

Salter questioned whether the Government would relax the 55% tax rate on Universal Credit, which reduces benefits when recipients work extra hours. “Given that the top rate of income tax in the UK is 45%, it is inequitable that Universal Credit recipients, who typically have lower incomes, face an effective tax rate of 55%.”

He added that this high clawback rate, combined with PAYE and National Insurance contributions, discourages claimants from increasing their working hours, thus counteracting efforts to combat underemployment.

Read more:
Universal credit tax rate hindering employment efforts, says Blick Rothenberg

0
FacebookTwitterGoogle +Pinterest
previous post
The impact of the attention economy on marketers
next post
Nothing in the King’s Speech: A Call to Arms for Entrepreneurs

You may also like

Financial Strategies and Innovations: Navigating the Future of...

September 2, 2024

Almost 10,000 start-up loans were awarded to businesses...

September 6, 2023

Energy UK backs scheme to cut profits from...

September 2, 2022

What Benefits are Available with Cross-Platform Gaming for...

October 23, 2024

How to manage employees with Christmas party time...

December 13, 2022

Microsoft moves in on $10bn backing for ChatGPT...

January 11, 2023

Inbetweeners actor, James Buckley becomes first UK person...

October 5, 2022

Windfall tax to be suspended if energy prices...

June 9, 2023

FSB launches ‘Sunshine List’ of ideas to empower...

June 2, 2023

Navigating Wealth Creation: A Comprehensive Guide to SMSF...

August 15, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved