Universal Credit (UC) is the government’s flagship welfare scheme which aims to simplify the benefits system for working age people by bringing together out of work and in work benefits, improve the transition to employment, and make work pay by removing disincentives to work. UC is one of a number of reforms to the welfare system since the Welfare Reform Act of 2012, which includes the under-occupancy rules for social housing (known as the bedroom tax), the Benefit Cap, reform of Local Housing Allowance for private rented properties, changes to Disability Living Allowance (Introduction of Personal Independence Payments) and Employment Support Allowance, limiting benefit claims to two children, and removal of help with rent for some single people under 21.
The impact of these reforms alongside the introduction of UC is difficult to monitor due to its complexity and the fact that individuals will have very different experiences based on their circumstances. However, some evidence suggests that vulnerable residents in particular, who have barriers to employment, could be at risk of poverty and housing instability as result of making a UC claim. It is therefore important that staff and partners are aware of the changes and can provide appropriate information to residents.
This note takes account of changes announced to UC in the government’s Autumn Budget 2017.
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