Ministers urged to re-boot universal credit

  • A think tank report has suggested that more women would be helped into work if a reboot of the welfare reforms took place. welfare bill 2.jpg

    The Resolution Foundation study supports the principles of universal credit, however it calls for far reaching changes to address “flaws” reports the BBC.

    This report follows a nine-month review by the think tank.

    "Failure to revisit and revise policies now... would represent a missed window of opportunity that may not present itself again once the system becomes fully bedded in," it says.

    The authors welcome the stronger incentives to work provided by UC's "work allowances", which allow people to retain their full benefit entitlements as they enter work and earn up to a certain level,

    David Finch, a senior analyst at Resolution Foundation, said that while UC had "many advantages" over the current system, "it hasn't caught up with big changes in the UK's labour market, such as rising in-work poverty. The government's flagship welfare reform programme needs a reboot so that it can deal with the big labour market challenges of the next decade and beyond, such as helping people escape low pay, rather than trying to tackle the problems of the past."

    A Department for Work and Pensions spokesman said research showed UC was effective.

    "Universal credit is simplifying the welfare system to make work pay, and research shows that it's getting claimants back into work faster and helping them earn more. Our reforms under UC also make it easier to start work if you're a parent, with increased help towards registered childcare costs, no matter how many hours you work. When fully rolled out, universal credit will make three million people better off, with a £7bn boost to the economy every year."

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