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<p>Tackling child poverty and disadvantage is a priority for the Government. Work
is the best route out of poverty, and Universal Credit is designed to strengthen incentives
for parents to move into and progress in work. However, the impact of Universal Credit
cannot be considered in isolation– it is a key component of a broader strategy to
move Britain to a higher wage, lower welfare, and lower tax society.</p><p> </p><p>This
strategy includes the increase to the personal tax allowance, the introduction of
the National Living Wage and the doubling of free childcare from 15 to 30 hours for
working parents. Taken together, these reforms are designed to support people into
employment and then enable them to progress in work and generate more income for themselves.</p><p>
</p><p>We expect claimants to respond positively to the improved incentives Universal
Credit introduces and increase their income. The previous forecast is static and,
as it does not capture these dynamic effects, it is of limited value in evaluating
the impact of Universal Credit on poverty. The Government therefore has no plans to
reinstate it.</p><p> </p>
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