delete The Universal Credit (Work Allowance) Amendment Regulations 2015
Amendment to Universal Credit Regulations 2013 that modifies the income deduction formula for Universal Credit work allowances. It changes the taper rate to 65% of earned income (or 65% of earned income exceeding work allowance), applies to existing awards from April 2016, and adjusts calculation rules for claimants in couples claiming as single persons.
This regulation perpetuates and fine-tunes a welfare system that fundamentally distorts work incentives by subsidizing idleness and taxing labor. The 65% marginal deduction rate (combining taper and means-testing) creates a poverty trap where low-income workers lose significant financial reward for working additional hours. Rather than adjusting these parameters within a flawed system, this regulation should be deleted as part of broader welfare reform that replaces income redistribution with broader economic freedom — including lower taxes and reduced state dependency. The regulation represents micro-management of benefit calculations that would be unnecessary in a genuinely liberalized economy.