'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.

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