From the TUC

Universal Credit: who are the losers?

11 Nov 2010, by in Society & Welfare

Ian Duncan Smith’s speech on Universal Credit (UC) is now available on the DWP website. It claims that:

some 2.5 million households will get higher entitlements as a result of the move to Universal Credit.

The big question for me is who are the losers?

We will have to wait to see the detail of the White Paper before this question can be answered. Richard has already pointed out that new rules on harship payments will mean significant losses for some families with children. And there are many other potential losers. If, for example, the Government’s plans involve integrating Tax Credits into UC, then many working families on median incomes or above will be about to see very sharp reductions in their entitlements.  If proposals involve integrating benefits that are currently universal, such as Carer’s Allowance, then means testing will mean that many carers lose their entitlement. And if plans involve sanctions for people who are currently in work – requiring them to increase their hours or lose their entitlements – those who can’t find more work will face significant cuts. Despite this morning’s spin, if cuts like these are coming it will be difficult for the Government to claim that everyone gains.

5 Responses to Universal Credit: who are the losers?

  1. Tweets that mention Universal Credit: who are the losers? | ToUChstone blog: A public policy blog from the TUC —
    Nov 11th 2010, 1:01 pm

    […] This post was mentioned on Twitter by ToUChstone blog, Ian Preston. Ian Preston said: RT @touchstoneblog: Universal Credit: who are the losers? […]

  2. johnston
    Nov 12th 2010, 9:52 pm

    hi nicola,do you have any knowledge on what is happening to couples claimants for benefits? I’m single, unmarried-judged to have partner because i have given women a home.

  3. Nicola Smith

    Nov 15th 2010, 11:47 am

    Dear Johnston,

    I am afraid I don’t have any details on this at the moment – but it looks as if the direction of travel is to award more benefits on a household basis, which would mean that adults living in the same household would have a joint entitlement. Further details will become available as legislation to enact the White Paper appears.


  4. Universal Credit | Work Programme
    Nov 15th 2010, 4:18 pm

    […] Ian Duncan Smith’s speech on Universal Credit (UC) is now available on the DWP website. It cla…. […]

  5. L. Bill
    Nov 24th 2010, 4:35 pm

    Is the government making all these cuts to the housing benefit system now, so local authorities get the blame? Then suddenly when the remote and power hungry DWP take control they can say how wonderful Universal Credit is – Not like that horrid housing benefit scheme! DWP administration of Housing Benefit is going to be a nightmare. Housing Benefit should remain seperate and be dealt with locally. I thought the coalition were all for localism?