Nursery World - Universal Credit: Part 2

In the second part of this series, David Finch explains how Universal Credit differs from the tax credits system it is replacing, and how families may be affected

An ever greater number of families are beginning to interact with Universal Credit (UC) as its roll-out across the UK continues. In this article exploring the new scheme, I’ll consider the scale of change coming the way of up to seven million families as the current tax credits system is gradually replaced.

The greatest changes will be experienced by working families – both in how they make claims and how much financial support they will receive.

Unlike the tax credits system, which requires one large form-filling exercise a year, UC entitlement will be assessed every month. It takes into account changes in a number of family characteristics, such as how many children they have, any rent/mortgage payments paid, paid out childcare costs and, importantly, how much income they have.

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