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Universal Credit veering off track, Resolution Foundation says | Universal Credit veering off track, Resolution Foundation says |
(about 4 hours later) | |
The government's flagship benefit reform has "serious design flaws" that must be resolved before it is expanded across the country, a think tank says. | The government's flagship benefit reform has "serious design flaws" that must be resolved before it is expanded across the country, a think tank says. |
The Resolution Foundation said Universal Credit had been taken too far from its original purpose and "veered off track" because of cost-cutting. | The Resolution Foundation said Universal Credit had been taken too far from its original purpose and "veered off track" because of cost-cutting. |
It comes as the government announces a further expansion of the scheme. | It comes as the government announces a further expansion of the scheme. |
Welfare Secretary Stephen Crabb said the payment was "transforming welfare" and getting people into work faster. | Welfare Secretary Stephen Crabb said the payment was "transforming welfare" and getting people into work faster. |
Universal Credit, championed by Mr Crabb's predecessor Iain Duncan Smith, aims to provide incentives for people to move off benefits and into work. | Universal Credit, championed by Mr Crabb's predecessor Iain Duncan Smith, aims to provide incentives for people to move off benefits and into work. |
Read more: Testing times ahead for Universal Credit | Read more: Testing times ahead for Universal Credit |
Universal Credit replaces six current benefits, including Jobseeker's Allowance and Employment and Support Allowance with a single payment. | Universal Credit replaces six current benefits, including Jobseeker's Allowance and Employment and Support Allowance with a single payment. |
After delays hit the original timetable, it is being gradually rolled out across the country and is now available to new single jobseekers in every job centre across the UK. | After delays hit the original timetable, it is being gradually rolled out across the country and is now available to new single jobseekers in every job centre across the UK. |
The latest target for a full roll-out is 2021. | The latest target for a full roll-out is 2021. |
The Resolution Foundation, chaired by former Conservative minister David Willetts, said it had long supported Universal Credit, which it said would simplify welfare and boost work incentives. | The Resolution Foundation, chaired by former Conservative minister David Willetts, said it had long supported Universal Credit, which it said would simplify welfare and boost work incentives. |
'Veered off track' | 'Veered off track' |
However, it said recent changes, "which have been driven by the government's desire to secure further savings in the welfare budget... have taken it too far from its original purpose". | However, it said recent changes, "which have been driven by the government's desire to secure further savings in the welfare budget... have taken it too far from its original purpose". |
Unless design flaws are eradicated, it said, Universal Credit "risks being reduced to little more than a very complicated vehicle for cutting the benefits bill". | Unless design flaws are eradicated, it said, Universal Credit "risks being reduced to little more than a very complicated vehicle for cutting the benefits bill". |
It urged Mr Crabb to "reclaim" the reform from the Treasury. | It urged Mr Crabb to "reclaim" the reform from the Treasury. |
The report said while some of the current system's "disincentives" to return to work had been removed by the reform, the opposite was true for many families, particularly "second earners" in couples. | The report said while some of the current system's "disincentives" to return to work had been removed by the reform, the opposite was true for many families, particularly "second earners" in couples. |
The think tank's senior economic analyst David Finch said: "It is a reform with lots of potential, but it has veered off track over recent years, particularly following a series of sharp cuts in support to working families." | The think tank's senior economic analyst David Finch said: "It is a reform with lots of potential, but it has veered off track over recent years, particularly following a series of sharp cuts in support to working families." |
'Milestone' | 'Milestone' |
Mr Duncan Smith resigned as work and pensions secretary in March this year, citing pressure to "salami-slice" welfare. | Mr Duncan Smith resigned as work and pensions secretary in March this year, citing pressure to "salami-slice" welfare. |
In his resignation letter, he said: "There had been too much emphasis on money saving exercises and not enough awareness from the Treasury, in particular, that the government's vision of a new welfare-to-work system could not be repeatedly salami-sliced." | In his resignation letter, he said: "There had been too much emphasis on money saving exercises and not enough awareness from the Treasury, in particular, that the government's vision of a new welfare-to-work system could not be repeatedly salami-sliced." |
The government said more than 450,000 people had made a claim for Universal Credit so far, with more than 9,500 new claims made every week. | |
Mr Crabb said the latest expansion marked an "important milestone". | Mr Crabb said the latest expansion marked an "important milestone". |
He added: "Universal Credit is transforming welfare and is central to our vision for our society where people of all backgrounds can earn a decent wage and provide for their families, with claimants moving into work faster and earning more than under the old system. | He added: "Universal Credit is transforming welfare and is central to our vision for our society where people of all backgrounds can earn a decent wage and provide for their families, with claimants moving into work faster and earning more than under the old system. |
"Our focus now is on continuing its expansion to all claimants." | "Our focus now is on continuing its expansion to all claimants." |