SINGLE parents working two days a week can get the same income as an employee on £60,000 a year, shock figures show.
Furious MPs yesterday urged Chancellor Jeremy Hunt to close the loophole.
AlamyA benefits loophole allows claimants to rack up income even if they are earning[/caption]
Figures show a single mum or dad with two children could receive £45,000 by working just 16 hours at the minimum wage.
A working person would have to be on nearly £62,000 a year to take home the same after tax.
Lee Anderson, the MP for Ashfield, Notts, said: “This is not fair on the hardworking taxpayer who can only dream of earning this amount of money.
“It beggars belief and needs to stop.”
Universal Credit is capped for a single person but a working single parent is exempt, and would not pay any income tax.
Figures analysed by The Telegraph show a single parent paying £2,000 a month for rent in London would receive £36,336 a year in tax-free Universal Credit.
This would include a Local Housing Allowance rate of up to £365.92 per week for a two-bed flat, a standard allowance payment plus an extra monthly allowance for children, as well as childcare costs.
If the parent worked 16 hours a week at £9.50 an hour their gross income would be £44,567.
If they instead worked three days, it would only edge up by £2,172 a year to £46,348.
Online forums show benefits claimants advising others to work no more than two days a week.
One person wrote: “I normally work 16 hours a week but did 32 hours a week for a month? I won’t be doing it again.”
Treasury officials confirmed they are looking at tackling the issue.
PALee Anderson MP says the system is unfair and should be tackled[/caption] Read More