The Family and Childcare Trust says that thousands of hard-working families are likely to lose vital cash from schemes such as Universal Credit and tax-free childcare as they are unable to navigate the system.
It also says that government esimates of the number of people affected are likely to be six times lower than reality.
While the treasury has acknowledged that 50,000 families may lose money by being on the wrong system, the charity says this figure does not take into account self-employed parents or those on zero hours contracts, whose incomes vary each week, and is likely to be more like 335,000.
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