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Jobless parents of under-fives could have benefits cut

Unemployed parents with children aged between one and five will be expected to attend regular interviews at their local job centre or have their main benefit cut by almost half, under the Government's proposals for welfare reform.

The plans, which would see parents penalised if they fail to prepare for work when their child starts school, were revealed in last week's White Paper.

The Government aims to simplify the current benefit system by introducing a single credit that would replace Working Tax Credit, Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker's Allowance and income-related Employment and Support Allowance.

The Universal Credit would provide a basic amount plus additions for children, disabilities and housing needs. It is not clear whether the Universal Credit will include a childcare element.

Critics of the proposals said the Universal Credit, which will cost around £4bn to introduce, could leave families worse off because it cannot be adjusted to take into account local differences in childcare and transport costs.

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