UNIVERSAL Credit is making some people who are in work but on low wages worse off poverty campaigners have told MSPs.

The Child Poverty Action Group gave evidence to the Scottish Parliament Social Security Committee warning people are losing out on hundreds of pounds a year.

It warned that the new Universal Credit system which is being introduced across Glasgow between now and the end of the year, leaves people with less to live on than the previous system involving tax credits.

Kirsty McKechnie Welfare Rights worker with Child Poverty Action Group said their evidence show the promise that Universal Credit would reduce poverty and incentivise work is not the case.

In a written submission, she said: “Cuts to Universal Credit have substantially reduced the rewards from work for many families. Cuts and freezes to work allowances mean that families see their UC award reduced at a lower level of earnings than under tax credits.”

CPAG said that a single parent would be worse off by £710 a year on average. And couples by £250 a year.

The campaign group said that a couple with two children with one full time and one part time earner on the national living wage of £7.83 per hour would be £1,200 worse off because of cuts to Universal Credit.

There was also a problem with universal credit payments being made to just one person in the household, CPAG said

Appearing before the committee Ms McKechnie said: “We have seen people return to an abusive partner. There is an issue that universal credit is given top one person. How you split that however is difficult.

“A 50/50 split won’t necessarily help a household.

“It is not as easy as it sounds.”

CPAG suggested that some people will lose out on “passported benefits” like free school meals and funeral expense payments.

It said there are people who are not entitled to Universal Credit who would have been entitled to tax credits, which would have enabled them to apply for the other payments.

Universal credit is now being rolled out across Glasgow Jobcentre areas between now and the beginning of December.