Laura Sharman 08 June 2015

‘Reboot’ Universal Credit concludes review

The Government should continue with its Universal Credit (UC) programme but implement ‘far-reaching’ reforms to address flaws in the policy, a think tank has concluded.

The Resolution Foundation has published its final report into Universal Credit supporting the core principles behind the programme. However, it finds changes to the scheme would help more people into work and tackle low pay.

David Finch, senior economic analyst at the Resolution Foundation, said: ‘Universal Credit holds many advantages over the current benefit system. But 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 try to tackle the problems of the past.’

Making it work outlines a package of reforms that could help 460,000 more people into work over the next ten years. This is nearly double the employment gains currently projected for the welfare programme.

The proposals include:

• Introducing a new work allowance for second earners in families;
• Significantly increasing work allowances for single parents who rent; and
• Increasing childcare support for working parents with children under the age of three to 95% of their childcare costs.

It also recommends Council Tax Support is incorporated into Universal Credit to reduce administration costs by up to £500m.

‘The reforms set out in this review build on the existing strengths of Universal Credit, such as the simplicity that should be achieved by merging six benefits into one,’ said Nick Timmins, chair of the review.

‘But the current design of Universal Credit contains flaws and it also carries some risks – for example that some people might reduce their hours of work at the taxpayer’s expense. A new government provides the perfect opportunity to address such issues before millions of people are moved on to the new system.’

SIGN UP
For your free daily news bulletin
Highways jobs

Virtual School Advisory Teacher

London Borough of Richmond upon Thames and London Borough of Wandsworth
£43,545 - £52,767 per annum
Virtual School Advisory Teacher
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Professional Services Partnering Manager

Derbyshire County Council
Grade 13 £49,178 - £52,937 per annum
Are you passionate about infrastructure, partnership management and making a real impact? Derbyshire
Recuriter: Derbyshire County Council

Business Architect

Essex County Council
£60049 - £70645 per annum + Hybrid working, Flexible working
Please note this vacancy is available as a fixed term contract or secondment opportunity for up to 12 months.Join a Council Shaping the Future of Pub England, Essex, Chelmsford
Recuriter: Essex County Council

Electrical Manager

Derbyshire County Council
Grade 12 £44,433 - £47,925 per annum
Are you ready to take on a pivotal leadership role in managing electrical systems across Derbyshire’s highway network? Derbyshire
Recuriter: Derbyshire County Council

Senior Service Product Manager

North Yorkshire Council
£47,181 - £51,356 per annum
Do you have experience in product management are looking to build your expertise? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner