Universal Credit comes good

The government’s benefit reforms have been plagued with disasters since their introduction in 2013. The Covid-19 crisis, however, has revealed a positive side.

Iain Duncan Smith © Oli Scarff/Getty Images
Iain Duncan Smith’s reforms are enjoying some unexpected plaudits
(Image credit: © Oli Scarff/Getty Images)

What is Universal Credit?

It’s the Conservatives’ flagship welfare reform, rolling up six existing forms of state welfare payments – including jobseekers’ allowance, housing benefit and child tax credits – into one single monthly payment. The aim of the reform, first announced in 2011 and still not completed, is to simplify the welfare system in order to help claimants and cut fraud, and to encourage work. The basic principle of the UC system is to cut out incentives for people to stay on benefits rather than accept work, and make it easier for them to access what they are entitled to. In February, more than 2.8 million people were in receipt of UC, which is being phased in over a period of years as people’s individual circumstances change.

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Simon Nixon

Simon is the chief leader writer and columnist at The Times and previous to that, he was at The Wall Street Journal for 9 years as the chief European commentator. Simon also wrote for Reuters Breakingviews as the Executive Editor earlier in his career. Simon covers personal finance topics such as property, the economy and other areas for example stockmarkets and funds.