Universal Credit is a social security benefit introduced in the United Kingdom in 2013 to replace six means-tested benefits and tax credits: income based Jobseeker’s Allowance, Housing Benefit, Working Tax Credit, Child Tax Credit, income based Employment and Support Allowance and Income Support. Universal Credit was announced by Work and Pensions Secretary Iain Duncan Smith at the Conservative Party annual conference in 2010 where it was stated the reform was designed to bring “fairness and simplicity” to the British social security system.
Universal Credit has faced continual criticism. All payments are made on a monthly basis and there is a waiting period of at least five weeks before the first payment is made. Housing benefit is paid direct to tenants, leading to arrears, as tenants have had to borrow to meet other living costs during the waiting period. Critics have noted many other issues, including problems with IT systems and project management. The rollout of Universal Credit has been significantly delayed and implementation costs, initially forecast to be over £2 billion, are now set to be over £12 billion.
Responding to criticisms of UC, the government made a number of changes in the Autumn statement of 2017 which came into effect in early 2018. These included reducing the waiting time for first payment from six to five weeks, and a new system for applying for a loan to cover that initial period when no money was paid to the claimant. Critics suggested this was not enough and a continuing campaign, backed by the Social Publishing Project, calls for the waiting time for first payment to be scrapped altogether.
Passported benefits have become a particular issue for concern; these are benefits such as free prescriptions, free school meals and free sight tests that you gain access to by receiving another kind of benefit. Seemingly overlooked in the original implementation of UC, recent legislation has made it clear that free school meals will now be means-tested for UC recipients, and only available to households with net earnings less than £7,400.
Universal Credit and Welfare
- Passported benefits. See the Feb 2018 legislation for free school meals.
- Better off in work? Possibly not if you are self-employed. A Policy in Practice report.
- Benefit changes timetable from Turn2Us
- The Social Publishing Project (SPP) has produced a template strategy document for stakeholders working on a proactive response to UC (click here)
- Resolution Foundation’s interim report on UC roll-out, Credit Where It’s Due
- BBC’s Q&A on Universal Credit
- Joseph Rowntree Foundation report on how UC could trap people in poverty and will affect women disproportionately unless some major flaws are ironed out
- Comprehensive Guardian report on rent arrears caused by UC
- Welfare Rights news from Rightsnet
- Punishing Poverty, Citizens Advice Manchester’s report on how sanctions affect jobseekers
The Quids In Universal Credit Guide
The Social Publishing Project has published a comprehensive guide to the process of migrating to Universal Credit, aimed at supporting first-time applicants. The Guide has been updated to reflect all 2018 changes. Copies can be ordered here. Over 700,000 copies sold!
