Universal Credit News
Latest news on Universal Credit, a United Kingdom social security payment that is replacing and combining six benefits for people with a low income. It is means-tested and is made up of various elements, such as a standard allowance, child elements, housing cost element and childcare costs element, which become payable to the claimant if they meet the relevant criteria.
Announced in 2010 at the Conservative Party annual conference, the aim of this policy was to make the social security system fairer for both claimants and taxpayers. However, implementation costs, initially forecast as £2 billion, have since grown to over £12 billion due to problems with the early strategic leadership of the project and the IT system. The roll-out of the new benefit has been gradual, focusing on those with the least complex circumstances. As of September 2019, 2.5 million people have been receiving the benefit, with 65% of them out of work. Payments are made monthly, with a waiting period of at least five weeks before the first payment, which can lead to rent arrears. There is also a concern that some people are receiving less than their entitlement, often due to the repayment of loans given during the initial wait period. Universal Credit has been and is subject to many criticisms.