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<p>At the summer budget the Chancellor of the Exchequer set out the Government’s commitment
to move the UK from a high tax, high welfare, low wage society to a lower tax, lower
welfare, higher wage society. This remains the case, and Universal Credit (UC) is
delivering this.</p><p>UC is a fundamentally different benefit to the legacy benefit
system and provides people with support into, and to progress in work.</p><p>Therefore
there is no meaningful way of comparing an unreformed Tax Credit system with Universal
Credit. The Government has committed to transitional arrangements as we reform the
benefits and Tax Credit system. Those transferred by DWP from tax credits to UC will
receive Transitional Protection. In addition, estimates of entitlements under UC of
the sort requested will vary depending on assumptions on the level of earnings.</p>
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