COVENTRY MESSAGE BOARD

Low-paid workers who take strike action will no longer have their wages topped up by the state, ministers say.



Workers on up to £13,000 a year can currently claim working tax credits to top up their income even when they take part in industrial action.

But from next year there will be no increase in benefits if a worker's income drops due to strike action.

The change is part of the new Universal Credit, which is replacing the benefit system with a single payment.

Work and Pensions Secretary Iain Duncan Smith says the fact that the current benefit system compensates workers and tops up their income when they go on strike is "unfair and creates perverse incentives".

"Striking is a choice, and in future benefit claimants will have to pay the price for that choice, as under Universal Credit, we no longer will," said Mr Duncan Smith.

Under the new rules, benefit claimants will be identified as being involved in a trade dispute using information provided by HM Revenue and Customs, the government said.

The amount a household receives in benefits will then be assessed using "pre-strike" level of earnings.

For new claims, any entitlement will be based on usual "non-strike" earnings, said the DWP.

Labour MP Anne Begg, chair of the work and pensions select committee, said: "There are still a lot of questions to be answered about the Universal Credit.

"This is another example of the it not being as generous as the government first made out that it was.

"The gains may actually be less than the gains that previously existed under the tax credit system. "