Abstract

Universal Credit is due to be introduced for new claimants from October 2013. In what is arguably the biggest overhaul of the welfare system in the United Kingdom (UK) since the Beveridge reforms of the 1940s, Income Support, Income based Jobseeker's Allowance, income based Employment and Support Allowance, Housing Benefit and Working and Child Tax Credits are all to be abolished and replaced with a single payment. Universal Credit presents the potential for a much simpler system with improved work incentives for many. However, perhaps inevitably with such a fundamental overhaul, the proposals for the credit as they stand also have a number of problems. This article identifies a number of these issues, and presents policy recommendations to help ensure the development of a reformed welfare system that works for all.

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