The Chartered Institute of Payroll Professionals
Policy Bi-Monthly Newsletter – September 2016
UK workers experienced sharpest wage fall of any leading economy 1 August 2016
According to new analysis published by the TUC, UK workers have suffered the biggest fall in real wages among leading OECD countries,
The analysis shows that between 2007 and 2015, real wages in the UK fell by 10.4% – a drop equalled only by Greece.
By contrast, over the same eight-year period, real wages grew in Poland by 23%, in Germany by 14%, and in France by 11%. Across the OECD, real wages increased by an average of 6.7%.
The UK, Greece and Portugal were the only three OECD countries which saw real wages fall.
The analysis also shows that while the UK has increased employment rates since the economic crisis, countries such as Germany, Hungary and Poland have increased employment rates significantly more, while raising real wages at the same time.
Commenting on the figures, TUC General Secretary Frances O’Grady said:
“Wages fell off the cliff after the financial crisis, and have barely begun to recover. As the Bank of England recently argued, the majority of UK households have endured a ‘lost decade of income’. People cannot afford another hit to their pay packets. Working people must not foot the bill for a Brexit downturn in the way they did for the bankers’ crash. This analysis shows why the government needs to invest in large infrastructure projects to create more decent, well- paid jobs. Other countries have shown that it is possible to increase employment and living standards at the same time.”
New universal credit web tool 9 August 2016
Since 2013, universal credit has been rolling out and progressing very slowly by postcode area. Two different systems are also running alongside each other so to assist with the confusion this is causing, a new eligibility universal credit web tool has been created. To complicate matters further, the two different systems running alongside each other and the rules about who can claim universal credit are different under each. As the full (digital) service rolls out, HMRC will no longer accept tax credit claims for people under state pension credit age in those areas. It can be very confusing for both claimants and advisers to understand the position and also how existing claimants will be affected.
As a result, and to help people check whether they are eligible to submit a claim for universal credit in their post code area as well as the status of tax credit and other benefit claims, a universal credit tool has been created.
Simply enter a postcode and the tool will tell you:
whether you are eligible to make a claim for universal credit in that postcode and, if so, the conditions for claiming future universal credit plans for your area whether you can currently claim tax credits and other benefits in your area what universal credit means for existing tax credit claimants links to detailed information about universal credit and moving from tax credits to universal credit details of independent local advice organisations in your area.
Other advice agencies and websites can also make use of the widget which allows the postcode tool to be added to another website .
Universal credit will eventually fully replace working tax credit, child tax credit, income support, income-based jobseeker’s allowance, income-related employment and support allowance and housing benefit.
cipp.org.uk
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