Last Monday, we had an engaging discussion about Universal Credit and its role in the welfare system, sparked by a report from Alex Clegg of the Resolution Foundation, who often contributes to the Visionary Network Panel.
The report shows that 71% of families eligible for Universal Credit or previous benefits were financially worse off with Universal Credit in 2024-25 compared to the old benefits system back in 2013-14. This issue mainly stems from reductions in the overall financial support for working-age people, rather than problems with how Universal Credit is designed.
It’s clear that Universal Credit today is quite different from the original version introduced by Iain Duncan Smith.
Like it or not, Universal Credit is here to stay, and it has significantly changed things. Some find it simpler and more adaptable, especially during the pandemic. However, it has also faced significant challenges, like last week’s large benefit fraud case, which has raised concerns about the system’s integrity.
Universal Credit seems to work well for some people but not as well for others. This often has more to do with associated policies, particularly those pushing everyone towards employment, which can be tough on those unable to work and ineffective for those unwilling to work.
I recommend reading Alex’s thorough report to get a complete picture of these issues and listening to the recording of the debate.
The recording can be accessed from https://bit.ly/VNR240415. While the slide pack, files and reports are available below:
Files and reports to be downloaded:
Please note that the handout contains additional slides covering other items of interest in the news and job adverts, which are provided in partnership with Business Smart (https://www.businesssmartsolutions.co.uk/).