The Welfare Reform Bill published on 17 February set out plans to replace the current system of means-tested benefits and tax credits for working-age adults with a single benefit from October 2013. The Universal Credit is designed to simplify the benefit system and strengthen financial incentives to work. However, there is likely to be a complex pattern of winners and losers across the income distribution and family types, and crucial choices remain about how to incorporate elements such as Council Tax Benefit and childcare tax credits within the Universal Credit.
