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Universal Credit Bonus Payments

Volume 670: debated on Monday 20 January 2020

It is always a pleasure to see Elderslie’s most famous daughter in the Chair, Madam Deputy Speaker.

Hon. Members will have seen in coverage in recent weeks that Greggs announced that its 25,000-strong workforce would receive payments of up to £300 each as part of a £7 million reward scheme. However, those of us more familiar with the flaws of the current universal credit system understand that some staff on universal credit will keep as little as £75 after tax and national insurance, and bonus earnings are clawed back by the Government at a rate of 63p in the pound. I am grateful to colleagues at Parkhead citizens advice bureau for helping to raise this as a social policy issue and hereby present the following petition to Government for consideration.

The petition states:

The petition of residents of Glasgow East,

Declares that current rules surrounding bonus salary payments to Universal Credit claimants are profoundly unfair and lead to unintended reductions in subsequent Universal Credit payments which perversely disincentivises work.

The petitioners therefore request that the House of Commons urges the Government to revise Universal Credit rules which would see one off bonus payments treated as capital rather than salary payments.

And the petitioners remain, etc.