An analysis by the Resolution Foundation think-tank and the Gingerbread charity found that, under the single benefit, which is due to replace most means-tested benefits and tax credits for working-age adults from 2013, some parents will lose over 94 pence in every pound earned as they increase their working hours.
The report, Childcare Support and the Hours Trap, shows that a single parent with one child earning the minimum wage would keep only 6 pence of every pound earned for every hour worked over 24 hours, while a second earner in a couple with two children on the living wage, defined as the minimum hourly wage necessary to meet basic needs, would keep only 9 pence of every pound earned over 20 hours a week, and take home no extra cash at all from working beyond 30 hours a week.
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