Living standards· Universal Credit· Welfare Taper cut Analysis of the Autumn Budget changes to Universal Credit 6 November 2021 by Mike Brewer and Karl Handscomb and Lalitha Try This briefing note looks at the changes to Universal Credit (UC) – the main benefit for low-income families – made by the Chancellor in the Autumn 2021 Budget. The reduction in the taper rate from 63 to 55 percent, and increase in the work allowance by £500 a year, represent a significant, permanent increase in … Continued READ MORE
Incomes· Living standards· Prices & consumption· Universal Credit· Welfare The big squeeze Assessing the changes to family incomes over the next six months 26 September 2021 by Karl Handscomb This winter will see a major income squeeze – and it will be focused on low-to-middle income households. High inflation, especially higher energy bills, will strain many families’ finances. But these pressures will be compounded for over 4 million families when £20 a week is cut from Universal Credit in October 2021. Looking forward, April … Continued READ MORE
Social care· Budgets & fiscal events· Public spending· Universal Credit· Economy and public finances To govern is to choose The choices facing the Chancellor this autumn 6 September 2021 by Torsten Bell and Adam Corlett and Daniel Tomlinson The Chancellor has not had a quiet introduction to national policy making: overseeing 17 major fiscal announcements in as many months. This summer provided the first lull, driven by the success of vaccines and the understandable focus on Afghanistan. But the quiet phase is coming to an end. Alongside dealing with whatever new paths the … Continued READ MORE
Universal Credit· Welfare· Intergenerational Centre Age-old or new-age? The changing incidence of social security benefits by age 27 August 2021 by Karl Handscomb and Lalitha Try At the start of the Covid-19 crisis, the number of families receiving income from the benefits system increased significantly, with 1.3 million more families receiving Universal Credit within three months – reversing a trend of a steady decline in families receiving benefits. In this briefing note, we examine the shift in the numbers of families … Continued READ MORE
Coronavirus· Universal Credit· Welfare Half-measures The Chancellor’s options for Universal Credit in the Budget 19 February 2021 by Mike Brewer and Karl Handscomb The Government has still to decide on whether to continue the £20 per week uplift to Universal Credit (UC) and Working Tax Credit (WTC), due to expire in just 45 days. There are suggestions the Chancellor will opt for a halfway house of keeping the uplift for six months. Compared to the pencilled-in default of … Continued READ MORE
Household debt· Universal Credit· Welfare The debts that divide us Flash findings from a survey of families claiming Universal Credit 7 February 2021 by Mike Brewer and Karl Handscomb The surge in claims for Universal Credit (UC) when the pandemic first hit means that UC caseloads are now about twice as high as they were pre-pandemic, with over half of all single parents now in receipt of UC. About 60 per cent of the current caseload have newly-claimed UC during 2020, and the fraction … Continued READ MORE
Coronavirus· Universal Credit· Welfare Safe harbour? Six key welfare policy decisions to navigate this winter 7 October 2020 by Karl Handscomb Despite the new Job Support Scheme, unemployment is set to rise substantially through the autumn and winter, as the Job Retention Scheme ends and the hospitality sector adjusts to new restrictions. This means many more individuals will soon be dependent on the social security system; and as the economy moves into the next phase of … Continued READ MORE
Universal Credit· Welfare Death by £1000 cuts? The history, economics and politics of cutting benefits for millions of households next April 2 October 2020 by Torsten Bell and Adam Corlett and Karl Handscomb The first Conservative Conference of a new parliament begins. It comes on the back of a surprisingly emphatic election win, but with rumblings beginning about the Chancellor’s plan to take £1,000 away from millions of low-income households in just six months’ time. At that conference it is George Osborne, not Rishi Sunak, that gets up … Continued READ MORE
Coronavirus· Universal Credit This time is different – Universal Credit’s first recession Assessing the welfare system and its effect on living standards during the coronavirus epidemic 27 May 2020 by Mike Brewer and Karl Handscomb When the UK went into lockdown, Universal Credit faced an unprecedented surge in claims. This report assesses how the system coped, how families on UC are managing, and what the Government should do to get UC ready for future challenges. READ MORE
Coronavirus· Universal Credit· Welfare No work, no pay Supporting unemployed people through coronavirus 1 April 2020 by Mike Brewer and Karl Handscomb This recession is a labour market recession, with the public health response to coronavirus swiftly shutting down employment-heavy sectors of the economy. Although the Government has rightly committed billions of pounds to support employers, encourage retention and bail out the self-employed, it is inevitable that unemployment will rise. For those who lose their job or … Continued READ MORE
Universal Credit· Cities and regions· Welfare The long and winding road The introduction and impact of Universal Credit in Liverpool City Region and the UK 21 January 2020 by Laura Gardiner and David Finch Universal Credit (UC) – the fundamental re-design of Britain’s welfare system involving merging six benefits into one – is an enormous undertaking. This report reviews both the national UC picture and the experience in Liverpool City Region in particular. READ MORE
Social care· Universal Credit· Fiscal policy· Welfare· Political parties and elections The shifting shape of social security Charting the changing size and shape of the British welfare system 26 November 2019 by Laura Gardiner Voters face a stark choice in the 2019 election about the social security system they want. This report examines how the provision of social security in Britain has changed; the big trends that current social security policy needs to take account of; and the policy offer from our three main political parties. READ MORE
Universal Credit· Welfare· Intergenerational Centre A fraying net The role of a state safety net in supporting young people develop and transition to an independent, healthy future 22 October 2019 by Laura Gardiner and Fahmida Rahman This report reviews the state-provided financial safety net available to young adults, and how it has changed over time. It finds that young people have always relied more on benefits than working-age adults. But this gap has narrowed over recent decades, as governments have increasingly deprioritised welfare support for young people. READ MORE
Universal Credit· Welfare Back in Credit? Universal Credit after Budget 2018 12 November 2018 by David Finch and Laura Gardiner This briefing note focuses on the implications of recent changes to Universal Credit – in particular the £1,000 increase in work allowances announced in Budget 2018 – for the number of winners and losers from the switch to this new benefit system, for its generosity and for its impact on work incentives. READ MORE
Labour market· Job quality and security· Universal Credit· Pay Irregular Payments: Assessing the breadth and depth of month to month earnings volatility 15 October 2018 by Daniel Tomlinson This research addresses the question of earnings volatility, unearthing striking findings about the lived experience of work – and the pay we receive for it – in the UK today. This report makes use of anonymised transaction data from over seven million Lloyds Banking Group (LBG) accounts in order to demonstrate the breadth and depth of changes in pay from month to month. READ MORE
Universal Credit· Welfare The benefits of moving: Managing the transition of existing claimants to Universal Credit 6 September 2018 by David Finch This note considers how best to avoid further implementation difficulties over the course of the managed migration of existing benefit claimants onto Universal Credit. It provides recommendations intended to boost Universal Credit’s chances of boosting benefit take-up – one of its key original objectives. READ MORE
Universal Credit· Welfare Universal Remedy: ensuring Universal Credit is fit for purpose 31 October 2017 by David Finch and Daniel Tomlinson and Mike Brewer As Universal Credit’s rollout continues, this report sets out ways in which the payment can be reformed to make it fit for purpose. We look both at design problems, such as the six-week wait, and issues with UC’s adequacy compared to the tax credit system it replaces. READ MORE
Universal Credit· Welfare Universal Challenge – making a success of Universal Credit 3 May 2016 by David Finch This report sets out a three point plan for the new Secretary of State, designed to both ensure that UC will provide the support needed for families moving into and progressing in work in the future and to make implementation as simple as possible. We argue that Stephen Crabb should restate and reclaim the role … Continued READ MORE
Universal Credit· Welfare Making the most of UC: Final report of the Resolution Foundation review of Universal Credit 8 June 2015 by David Finch The improvements necessary to enable UC to, at a minimum, make work pay and smooth the transition into work must be made before millions of families are moved onto the new system. The start of the new parliament provides a natural opportunity to review the potential impact of UC and set out plans for its … Continued READ MORE
Universal Credit· Welfare Credit where it’s due? Assessing the benefits and risks of Universal Credit 9 March 2015 by David Finch and Vidhya Alakeson and Mike Brewer The government’s plans for Universal Credit (UC) were first set out in November 2010, and its concept has received broad cross-party support. But the process of implementation has been dogged by a series of delays – the OBR now anticipates that it will not be fully rolled out until at least 2020, potentially 3 years … Continued READ MORE
Labour market· Universal Credit· Childcare· Welfare All work and no pay: Second earners’ work incentives and childcare costs under Universal Credit 24 August 2013 by Giselle Cory A part-time cleaner with two children in childcare and working 25 hours a week would be £7 a week worse off than if she didn’t work at all while a part-time teacher with the same hours and childcare arrangements would be £57 a week better off under the Government’s new proposals to help working families … Continued READ MORE
Universal Credit· Welfare Getting On: Universal Credit and older workers 28 May 2013 by Giselle Cory Britain is missing a crucial opportunity to encourage more older people into work because the government’s new flagship welfare reform delivers only mixed benefits for the age group. While many older workers will be better off under Universal Credit (UC) – the system replacing tax credits and several other benefits from this year – others … Continued READ MORE
Labour market· Universal Credit· Welfare Conditions Uncertain 5 October 2012 by Matthew Whittaker and Matthew Pennycook Conditions Uncertain finds that almost 1.2 million low-paid workers entitled to support under Universal Credit will have to look for extra work or face the risk of having payments withdrawn. The report reveals for the first time how many working people are likely to be affected by a new regime which will require the lowest-paid … Continued READ MORE
Universal Credit· Welfare Shrinking Support: what Universal Credit indexation means for living standards 11 September 2012 by Matthew Whittaker In Budget 2010, the Chancellor announced that the uprating of benefits, tax credits and public service pensions would, from April 2011, be made with reference to the Consumer Prices Index (CPI) rather than the Retail Prices Index (RPI) or Rossi Index. Because CPI tends to give a lower measure of inflation than the other two … Continued READ MORE
Universal Credit· Childcare· Welfare Childcare support and the hours trap: the Universal Credit 14 November 2011 by Donald Hirsch The Government recently announced the terms under which childcare costs will be supported as part of Universal Credit from 2013. It has made an extra £300m available, compared to present spending levels. This briefing updates the earlier briefing Childcare support and the hours trap, published in May 2011, to show the impact of the government’s … Continued READ MORE
