Andrew Bridgen highlights the failings of the old benefits system which had no incentive to work whatsoever as up to £9 out of every £10 earned could be lost in taxes.
Will my right hon. Friend confirm that someone on benefits moving into work under the legacy welfare system that we inherited from the Labour Government could have lost up to £9 of every £10 they earned? There was no incentive to work whatsoever.
My hon. Friend draws attention to a real failing of the previous system. There was such a high rate of tax—sometimes up to £9 out of every £10—that there was no incentive for people to get into work. I thank him for reminding us that universal credit adjusts to such situations and ensures that work will always pay.