Erica Crompton receives £12,324 in Universal Credit and earns £10,100 part-time, saying higher-paying jobs would leave her worse off after tax
A woman who has been receiving Universal Credit for six years argues that employment “simply isn’t worth it”. Erica Crompton maintains her experience demonstrates she’s financially better off claiming Department for Work and Pensions (DWP) benefits rather than having her earnings reduced through taxation.
Speaking to the Telegraph, Erica explained she entered the DWP benefits system in 2009 whilst earning minimum wage and struggling with deteriorating mental health. Initially, she received Jobseeker’s Allowance and Housing Benefit.
In 2019, she transitioned to Universal Credit. Her current monthly payment totals £1,027, comprising £381 for rent on a shared ownership property and £200 as a carer’s allowance for providing over 35 hours weekly support to her wheelchair-using partner.
She explained: “Last year I took home around £10,100 in earnings, and £12,324 per year in Universal Credit – that’s a total of £22,424, untaxed, before any expenses, and without deductions for my student loans on my two degrees.
“Most of the work-from-home jobs that I could get don’t pay much more than this – and they are taxed. I’d end up with less money every month if I wasn’t also on Universal Credit.”
Erica, who occasionally works as a journalist, shared her perspective as the DWP benefits and welfare system undergoes substantial reform under the Labour government, reports Birmingham Live.
Addressing a cross-party committee, Work and Pensions Secretary and Labour MP Pat McFadden informed MPs he was “not ruling out anything” regarding potential future cuts. “I have only been in the job for three months, and if I start ruling things out it will just close doors in the future, so I am not ruling anything out,” he added.
A spokesperson for the DWP stated: “We want a welfare state that is there for those who need it and supports people into work, while delivering fairness to the taxpayer.
“That’s why we’re launching the Timms Review to make sure PIP is fair and fit for the future, which is being co-produced by disabled people and their representative organisations.”
