News

25.05.16

Warning over ‘serious design flaws’ as Universal Credit rolled out

The controversial Universal Credit benefits system has started to be fully implemented today, despite warnings from the Resolution Foundation about flaws in its design.

Universal Credit is available to jobseekers with families as well as single job seekers in Bath, Newcastle, Bridgewater, Rugby and Lowestoft jobcentres from today.

Universal Credit involves combining jobseeker’s allowance, income support, employment and support allowance, working tax credit, child tax credits and housing benefits into one payment, and is designed to encourage benefits claimants back into work and to allow them access to an online account about their benefits claim.

But David Finch, senior economic analyst at the Resolution Foundation, said: “Universal Credit is in many ways an improvement on the current system, and some families will be better off. But it also has serious design flaws that need to be addressed before it has been fully implemented.

“The weakened rewards for entering work and earning more are particularly worrying, especially for single parents and second earners who are normally sensitive to such incentives.”

The Resolution Foundation has previously warned that Universal Credit has “veered off-track” from its original goals and will leave the poorest families worst off, with 1.3 million losing all in-work support and 1.2 million suffering reductions in benefits.

Lord Freud, minister for welfare reform, said: “Universal Credit is transforming lives and is central to our vision of a society where anyone, regardless of their background, can get on in life and reach their potential.”

The Public Accounts Committee and the Institute for Fiscal Studies have also published reports criticising the system.

(Image c. Kirsty Wigglesworth from PA Wire)

Have you got a story to tell? Would you like to become a PSE columnist? If so, click here.

Comments

Sam Saveloy   26/05/2016 at 10:58

“Universal Credit is in many ways an improvement on the current system, and some families will be better off." Oh my God, someone will get an earful of abuse, plus the sack, if anyone ends up better off.

Carer And Single Parent   06/06/2016 at 14:00

What's the point of a system that penalises people that want to work through no fault of their own ? The past few years The Government has done a great job of tearing folks apart on the lower end of society . The economy will not roar ahead unless jobs pay a decent wage. Stop branding people, stop turning people against people it's only shielding those Who are benefiting from stolen riches that need to be equally distributed.

Stephen   22/11/2016 at 17:10

Just how is UC transforming lives how does UC encourage people back into work when job seekers didn't UC and sanctions are not about helping anybody into work ( how can a sanction making someone destitute possibly homeless be any help) UC was deliberately designed to intimidate control and oppress the people on it

Add your comment

 

related

public sector executive tv

more videos >

latest news

View all News

comment

Public sector can lead the UK to an ultra-low emission future

25/04/2017Public sector can lead the UK to an ultra-low emission future

Poppy Welch, head of Go Ultra Low, explains why the public sector has the p... more >
Employee financial wellbeing in the public sector

25/04/2017Employee financial wellbeing in the public sector

Charles Cotton, performance and reward adviser to the Chartered Institute o... more >

editor's comment

11/04/2017A watershed moment in British politics

The government has now officially triggered Article 50, formally starting the process of Britain’s exit from the EU. How this will affect local government, the wider public sector and the Civil Service remains to be seen, but the likelihood of it being plain sailing with the enormity of the task ahead seems rather unlikely.  It is, therefore, quite appropriate that in this edition of PSE Professor Chris Painter reflects on the profound changes that have taken place in the... read more >

last word

Parliament cannot solve homelessness through legislation alone

Parliament cannot solve homelessness through legislation alone

Cllr Michelle Lowe, deputy leader and cabinet member for housing and health at Sevenoaks District Council, argues that if the government is really serious about combating homelessness they will work more > more last word articles >

interviews

Maintaining the momentum for further devolution

25/04/2017Maintaining the momentum for further devolution

Ahead of this year’s mayoral elections, Lord Kerslake, the former hea... more >

the raven's daily blog

Engaging voters ahead of May’s elections

24/04/2017Engaging voters ahead of May’s elections

Emma Hartley, head of campaigns at the Electoral Commission, discusses the importance of a collaborative approach to engage voters ahead of this year’s elections.  ... more >
read more blog posts from 'the raven' >

public sector events

events calendar

back

April 2017

forward
mon tue wed thu fri sat sun
27 28 29 30 31 1 2
3 4 5 6 7 8 9
10 11 12 13 14 15 16
17 18 19 20 21 22 23
24 25 26 27 28 29 30
1 2 3 4 5 6 7

featured articles

View all News