11m adults to lose or gain money under Universal Credit
Ever wondered how many people will either lose out or gain under Universal Credit (UC)? Well, the Institute for Fiscal Studies (IFS) did and this is what it found out…
According to the IFS’s research, 11m adults will see their money go up or down under the government’s flagship reform of the benefits system, though by this stage in the game ‘reform’ is a pretty wacky way of putting it.
Apparently, when UC is fully rolled out in 2024 (which if it’s passage into the world so far is anything to go by, is far from certain) around 2m people will be £1,000 worse off a year, with self-employed on below average incomes and low-income families with little savings among the biggest losers.
The IFS says that UC disproportionately reduces incomes among poorer adults, with those in the lowest-income 10% of the population on average losing the most – a 1.9% fall in their income, equivalent to £150 per year per adult.
Tom Waters, an IFS research economist, said: ‘The biggest losses experienced because of the switch are mostly down to a small number of specific choices the government has made about universal credit’s design, such as its treatment of the low-income self-employed and people with financial assets.
‘Many of those very large losses do turn out to be temporary for those concerned.
‘However, even when measuring people’s incomes over relatively long periods, universal credit still hits the persistently poor the hardest on average.’
So, poor old UC gets yet another savaging. Will there ever be any good news? IFS report here.