Failure of Universal Credit Would Leave Us with the Worst of Both Worlds

The principles behind Universal Credit need defending – otherwise we risk being left with the worst of both worlds.  While UC strengthens work incentives for some, other groups are not so well off in all circumstances. Families with children would hit a ceiling where, despite working more hours, steep withdrawal of benefits leads to a flat-lining or even a decline in disposable income after childcare costs. In some cases, families would be worse off working full-time than part-time. Many of the design and implementation issues can be solved. But, despite the often-sound principles behind UC, to make a real difference it needs to be linked to industrial and labour market policy to address the barriers that prevent some people from moving out of benefits and into work. This includes the prevalence of low low-paid, insecure jobs, a lack of affordable childcare, insufficient skills and discrimination against some groups in the labour market. Joining up UC to these other vital areas of policy would help it to succeed and encourage the support that it needs from across government. Read more on the Joseph Rowntree Foundation website.