Universal Credit claimants under the age of 25 are losing out on hundreds of pounds every year, according to a new report published by the Resolution Foundation.
The report, which was commissioned by the Health Foundation, found that youngsters are on average £100 worse off than those over the age of 25 over the year, with young single parents hit even harder.
Resolution Foundation's Research and Policy Analyst, Fahmida Rahman, said Universal Credit has created a "young parent's penalty".
Speaking about the report's findings, she said: "Over the past 20 years, successive governments have chipped away at the social safety net for young adults, despite that group being more reliant on benefits than other working-age groups.
"Universal Credit should be an opportunity to address this problem. But instead its design has created a ‘young parents’ penalty, with young single parents twice as likely to lose out under the new benefit system as they are to benefit from it.
"This harsh treatment comes at a time when child poverty is already projected to rise."
According to the report, two in three (67 per cent) single-parent families age 16-24 see incomes reduced when they're placed on Universal Credit. However, only 56 per cent of older single-parent families see the same dip.
It's estimated that young single parents typically see cuts of £15.20 a week on the new welfare system, and are also less likely to receive help towards childcare.
Single Universal Credit claimants aged between 18 and 24 are entitled up to £251.77 per month as standard allowance.
Meanwhile, those aged over 25 receive an average of £317.82 per month - £66.05 more.
Responding to the report's findings, a spokesperson for the Department for Work and Pensions (DWP), said: "As this report acknowledges, Universal Credit is a simpler system that incentivises work and represents a positive step for many young adults.
"Parents on Universal Credit can claim back up to 85 per cent of their childcare costs and since April working parents have been able to earn an extra £1,000 a year before their payments start to reduce.
"There are near-record numbers of single parents in work, but we spend more than £95 billion a year on benefits for families who need more support."
