Universal Credit is a benefit introduced by the UK government in 2013 to replace six existing benefits. Including Jobseeker’s Allowance and Housing Benefit, with a single monthly payment. It was designed to simplify the benefits system, make work pay, and reduce fraud and error. However, since its introduction, Universal Credit has been criticized for its complexity. Delays in payments, and the negative impact it has had on some of the most vulnerable people in society.
The aim of Universal Credit is to provide support for people who are either out of work or on a low income. It is available to people who are over 18 and are either in work but on a low income, looking for work. Or unable to work due to illness or disability. The amount of Universal Credit a person is entitled to depends on their income and circumstances. Such as whether they have children or a disability.
To apply for Universal Credit, a person must first create an online account with the Department for Work and Pensions (DWP). They will then be asked to provide details of their income, housing costs, and any other relevant information. Once their application has been processed, they will be informed of the amount of Universal Credit they are entitled to.
Universal Credit is paid once a month, directly into a person’s bank account. This means that people receiving Universal Credit are responsible for managing their own money and paying their own bills. It is important to note that Universal Credit includes an amount for housing costs. Which is intended to cover rent payments. This means that people receiving Universal Credit should pay their rent directly to their landlord.
Features of Universal Credit
One of the key features of Universal Credit is the “work allowance”. This is the amount of money a person can earn before their Universal Credit payment starts to reduce. The work allowance is intended to encourage people to work. As it means that they can keep more of the money they earn. However, the work allowance has been criticized for being too low, meaning that some people are still better off not working at all.
Universal Credit has also been criticized for its strict sanctions regime. If a person fails to comply with the requirements of their Universal Credit claim, such as attending a job interview or meeting with their work coach, their payment can be reduced or even stopped altogether. Critics argue that these sanctions are too harsh and can push vulnerable people further into poverty.
Another issue with Universal Credit is the delay in payments. When a person makes a new claim for Universal Credit, they must wait at least five weeks before they receive their first payment. This delay can cause significant financial hardship for some people, particularly those who have no other source of income. In response to these concerns, the government has introduced an “advance payment” system, which allows people to receive an upfront payment of their Universal Credit, to be repaid over the following months.
Universal Credit has also been criticized for its impact on people with disabilities. The introduction of Universal Credit has coincided with significant cuts to disability benefits, meaning that some disabled people have seen their income fall significantly. There have also been concerns that the work capability assessment, which determines whether a person is fit for work, is too strict and does not take into account the impact of a person’s disability on their ability to work.
Conclusion
Overall, Universal Credit is a benefit designed to simplify the benefits system and provide support for people on a low income. However, its implementation has been beset by problems. Including delays in payments, harsh sanctions, and its impact on some of the most vulnerable people in society. While some argue that these problems can be addressed with changes to the system. Others believe that Universal Credit is fundamentally flawed and should be replaced with a more effective and compassionate benefits system.
Find out who is entitled and more information about this benefit here.