'Starving people back to work'
Date published: 17 June 2012
Low-paid workers who take strike action will no longer have their wages topped up by the state, ministers say.
Workers on up to £13,000 a year can currently claim working tax credits to top up their income even when they take part in industrial action.
But from next year there will be no increase in benefits if a worker's income drops due to strike action.
Labour accused Work and Pensions Secretary Iain Duncan Smith of "starving people back to work".
The change is part of the new Universal Credit, which is replacing the benefit system with a single payment.
Mr Duncan Smith says the fact that the current benefit system compensates workers and tops up their income when they go on strike is "unfair and creates perverse incentives".
"Striking is a choice, and in future benefit claimants will have to pay the price for that choice, as under Universal Credit, we no longer will," said Mr Duncan Smith.
Under the new rules, benefit claimants will be identified as being involved in a trade dispute using information provided by HM Revenue and Customs, the government said.
The amount a household receives in benefits will then be assessed using "pre-strike" level of earnings.
For new claims, any entitlement will be based on usual "non-strike" earnings, said the DWP.
Do you have a story for us?
Let us know by emailing news@rochdaleonline.co.uk
All contact will be treated in confidence.
Most Viewed News Stories
- 1Abandoned shopping centre to be brought back to life as a banqueting hall
- 2‘Express’ bus service from Norden to Manchester city centre via Heywood is on the cards
- 3Two men arrested after suspected stolen car fails to stop in Rochdale
- 4'Game changing' Northern Gateway development set to take step forward
- 5Ramadhan Health Fair event at Wardleworth Community Centre
To contact the Rochdale Online news desk, email news@rochdaleonline.co.uk or visit our news submission page.
To get the latest news on your desktop or mobile, follow Rochdale Online on Twitter and Facebook.