DWP welcomes report showing people will lose money on Universal Credit

Universal Credit may discourage single parents from working, claims the IFS [Image: Getty Images].

The Department for Work and Pensions has welcomed a report by the Institute for Fiscal Studies, showing that more people will be worse-off under Universal Credit than the previous benefit system.

The Conservative Government has claimed that no individual would lose money as a result of its changes. But the IFS study shows:

  • Single parents have less incentive to work under UC than the old system.
  • With couples, UC encourage just one to work, rather than both.
  • And single parents under UC will keep eight per cent less of their earnings than previously.

Here are some more details:

The introduction of Universal Credit (UC) will leave working families worse off on average, the Institute for Fiscal Studies has said.

UC, which combines six benefits into one monthly payment, was intended to be more generous than the current system but the IFS said cuts to the programme meant this would not be the case.

According to the IFS research, an estimated 2.1 million families will face an average loss of £1,600 a year, while 1.8 million will gain an average of £1,500.

Its figures suggest 1.1 million homes with no-one in paid work will lose out by about £2,300 a year, while 500,000 are expected to gain £1,000. Working single parents are said to face an annual loss of £1,000.

Source: Universal Credit leaves working families worse off, IFS says – BBC News

The DWP, it seems, is delighted by this outturn:

We welcome the IFS analysis which shows that UC will make work pay and increase financial incentives for people to work more, while also bringing the welfare bill under control.”

Source: DWP being evasive over universal credit delays, MPs claim | Politics | The Guardian

In fairness, the DWP made another statement, in response to the BBC report, as follows:

“Universal Credit also includes a wide range of additional benefits – including increased childcare and more support from a dedicated work coach both things that were ignored in the IFS’s analysis.”

So it seems the Department is trying to have it both ways – both welcoming the IFS report and trashing it at the same time.

Logical conclusion? The IFS is right and the DWP is trying to hide the downside.

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10 thoughts on “DWP welcomes report showing people will lose money on Universal Credit

  1. jeffrey davies

    if it ever works just one cock up after another rtu ids should ne subject to a court for abuse of the welfare system

  2. Terry Davies

    tories have selected cronies who gain by engratiating themselves with USA corporations and the likes of Donald Trump.
    Do you think media or courts in their investigative role will create justice and fairness for all.?

  3. Jenny Hambidge

    According to Tories idealogy the NHS has caused a demographic disaster. Instead of children and older people being culled by sickness and disease, allowing these groups free at point of use medical care, country has to now spend billions on elder care and care and support for Sick and disabled people, to say nothing of Supporting them with pensions and benefits. Something drastic needs to be done. People have to die – in a slightly different way from the Nazi’s plan, perhaps.The NHS has to go and only those who can afford other insurance are going to be allowed to live. We are well into this utterly hideous plan.
    And keep the breeding poor in poverty and despair.It will cost for a while but afterwards when there are fewer of them They wil thank us for it, not so much competition for slave labour jobs says the Tories’ Master Planners.

  4. Fabian

    When are people gonna stop moaning about it and take some action against these drug taking b’stards?

Comments are closed.