Universal Credit
·
Welfare

Listen and learn

Improving the way that Universal Credit works

Alex Clegg
Alex Clegg
Lindsay Judge
Lindsay Judge
Ruth Patrick
Ruth Patrick
Millie Light
Millie Light

April 2026 will mark a true milestone for the UK benefits system: the end of the thirteen-year rollout of Universal Credit (UC) that has brought together all means-tested working-age benefits. From this point, an estimated 8.5 million working-age adults and 6.5 million children will be living in households in receipt of UC, equivalent to a quarter of all people below pension age (26 per cent), and half of all children (54 per cent) in Britain today.

Given this, it is more important than ever to ‘get UC right’. This report considers an often-overlooked aspect of the benefit: how the nuts and bolts of the UC system could be improved. Here, we set out a programme of reform that is grounded in claimants’ own experiences; realistic about the system as is; and fully costed when it comes to both the investment and ongoing spend our recommendations would entail.

 

Key findings

  • The ‘five week wait’ at the start of a claim causes financial hardship for some, especially for those without savings or a final pay cheque.
  • The monthly assessment period disadvantages those paid weekly, four-weekly, or with an irregular income.
  • The need to pay childcare costs upfront prevents some claimants from entering work or increasing hours, undermining UC’s promise to ‘make work pay’.
  • Communication can be poor, leaving claimants struggling to understand their current rights and their responsibilities.
  • Claimants often face long waits for replies to requests they make for information, and this can erode relationships with those administering UC.
  • Although overall customer satisfaction with UC is relatively high, some report being treated with suspicion or disrespect during interactions with DWP.

Recommendations

  • Boost awareness and access to UC advances, consider more flexible backdating for late claimants, and follow Northern Ireland’s lead and introduce a discretionary crisis grants scheme.
  • Allow claimants to elect a four-weekly assessment period if desired and let self-employed claimants be assessed on a rolling three-month basis.
  • Address childcare barriers by integrating the Flexible Support Fund into UC and consider utilising the Tax -Free Childcare architecture to pay UC childcare support upfront into a dedicated account.
  • Enhance communication and transparency by giving clear award breakdowns, provide an urgent action ‘tab’ on the UC journal, and commit to respond to enquiries and requests in a reasonable and clearly communicated timeframe.

Further reading

Listen and learn
Improving the way that Universal Credit works
·
Alex Clegg, Lindsay Judge, Ruth Patrick, Millie Light
Care to negotiate?
Making a success of the Adult Social Care Negotiating Body
·
Charlie McCurdy, Melanie Simms, Hannah Slaughter
Delivering dignity?
Early lessons from the introduction of Adult Disability Payment in Scotland
·
Lindsay Judge, Louise Murphy

https://doi.org/10.63492/flw6931

Alex Clegg
Alex Clegg Economist
Lindsay Judge
Lindsay Judge Research Director
Ruth Patrick
Ruth Patrick
Millie Light
Millie Light