The most effective way to support families would be by reversing the £3bn cut to work allowances announced by the last chancellor.
It said: "We expect many claimants to respond to the changes to work allowances announced in the summer budget by actively seeking more work, and we will support them with this.
However, Resolution said Treasury reductions to work allowances in UC announced by the chancellor, George Osborne, a year ago meant that any gains originally envisaged by UC may now be outweighed by the likely pain and effort of implementing it.
reducing the income thresholds in tax credits from £6,420 to £3,850 and work allowances in Universal Credit The OBR said the reforms would have a negligible effect on the jobs market.
Cuts to work allowances in UC starting in April mean that Smith now can earn less before her top-ups are clawed back, making it even less of an incentive to do extra hours.
Changes to work allowances announced in July mean some in receipt of tax credits are still due to see their incomes shrink by hundreds of pounds as they migrate on to universal credit between now and 2021.
Estimated saving: £300m by 2020 Despite the government's much trumpeted U-turn on tax credit cuts in October, reductions to universal credit (UC) work allowances announced in the summer budget and the autumn statement will see working families with children lose on average £1,300 a year, and as much as £3,000 in 2020, according to the Resolution Foundation.
The draft recommendations included a paragraph which said: "The Scottish Parliament will have the power to vary the personal allowance, the carer element, the child element, including the disabled child addition, the childcare costs element, the limited capability for work and work-related element and work allowance of UC".
"We are simplifying the work allowances under UC and giving people extra help to progress in work.
The work allowances cut will hit the majority of 80,000 UK households currently in work and on universal credit.
