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Universal Credit


Universal Credit is a social security benefit introduced in the United Kingdom in 2013 to replace six means-tested benefits and tax credits: income based Jobseeker's Allowance, Housing Benefit, Working Tax Credit, Child Tax Credit, income based Employment and Support Allowance and Income Support. Universal Credit was announced by Work and Pensions Secretary Iain Duncan Smith at the Conservative Party annual conference in 2010 where it was stated the reform was designed to bring "fairness and simplicity" to the British social security system. It is one of several wide-ranging welfare reforms introduced by the 2010-2015 Coalition Government in the Welfare Reform Act 2012.

Universal Credit is being rolled out gradually to Job Centres with rollout initially focusing on claimants in the most "simple" circumstances, namely single adults without housing costs. As of 22 February 2016, 364,000 people have made a claim on Universal Credit. Research by the government claims that "Universal Credit claimants find work quicker, stay in work longer and earn more than the Jobseekers' Allowance claimants". Despite this, Universal Credit has been criticised on a number of grounds including introduction of monthly social security payments, and the payment of housing benefit direct to tenants. Critics have also noted problems with IT systems and project management which have significantly delayed the rollout of Universal Credit. Existing claimants of "legacy benefits" (i.e. the benefits that Universal Credit is going to replace) are not expected to be transferred to Universal Credit until late 2017 at the earliest. According to the current timetable, Universal Credit is due to be delivered everywhere in 2021.


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