Farmers lose out
20th November 2017
Universal credit hits some farmers
An article in the Sunday Times stated that some hill farmers and low paid agricultural workers face losing thousands of pounds a year when the Government’s Universal credit comes in. Although some are earning low incomes, the new system assumes that they earn the national average of £13,644 pa. A farmers association spokesman commented that at least a third earned below this level of income.
A married hill farmer with 2 children earning £6,000 per annum is currently able to increase their income to £23,019 with tax credits. This will drop by £3600 under the new system. An example was given of a hill farmer selling her sheep at £21-£25 which was below her break even figure of £27.
A Cumbrian accountant stated that hundreds of their clients earned below the minimum wage and were likely to be adversely affected.