Published today (31 October) by think tank the Resolution Foundation, the report, ‘Universal Remedy: ensuring Universal Credit is fit for Purpose’, says that the current design of the new benefits system is not fit for purpose in 21st century Britain and needs urgent change, particularly if it is to become the bold welfare reform the Government planned it to be.
Introduced in 2016, Universal Credit (UC), which replaces six existing means-tested benefits including child tax credit, working tax credit and income support, is being gradually rolled out across the UK. Cuts of almost £3 billion a year to the system mean the UC taper rate – how quickly the benefit is withdrawn as recipients earn more, has been reduced from 65 per cent to 63 per cent. It is estimated that 2.8 million households will be worse off under UC than the tax credits system.
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