IDS hails roll out of Universal Credit as ‘cultural change’

16 Feb 15
The government’s Universal Credit benefit system is being rolled out across the UK from today, marking the start of what work and pensions secretary Iain Duncan Smith is calling a ‘cultural change’ to the world of work.

By Vivienne Russell | 16 February 2015

The government’s Universal Credit benefit system is being rolled out across the UK from today, marking the start of what work and pensions secretary Iain Duncan Smith is calling a ‘cultural change’ to the world of work.

Research issued by the DWP yesterday, tracked claimants over 10 months in pilot areas in the North West of England. It found that Universal Credit claimants were 13% more likely to have been in work than those on Jobseeker’s Allowance.

Speaking at the weekend Duncan Smith said Universal Credit was a ‘landmark’ event in the government’s economic plan.

‘It guarantees you will always be better off in work than on benefits,’ he said.

‘The evidence shows that under Universal Credit, people move into work more quickly and earn more money giving them increased financial security. It is very impressive that we have seen these results so soon and that this is having a real impact on people’s lives. This is a cultural change which will alter the landscape of work for a generation.’

Jobseekers also spent more time looking for work and were more positive that the benefits system was helping them look for work, according to the research.

Currently available in 96 jobcentres, more than 150 more will offer the benefit over the next two months. It will be available at all jobcentres by this time next year.

The DWP maintains that, once rolled out, Universal Credit will boost the economy by £7bn a year.

However, the reform has been subject to questions and criticism. The National Audit Office has said it is not yet clear whether the planned benefits would materialise.

Universal Credit, which combines six income-based benefits into one payment, has been beset by IT problems, causing the Department for Work and Pensions to write off more than £40m in costs.

The six benefits brought together under Universal Credit are: Jobseeker’s Allowance; Income Support; Employment and Support Allowance; Working and Child Tax Credits; and Housing Benefit.

 

 

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