Universal credit benefit reform does not make anticipated savings

Universal credit (UC) is not going to give the UK government its much-desired savings in benefit costs, according to an official report.

An Office for Budget Responsibility (OBR) report says that UC will save the government less than 2% of what it would have spent on benefits if UC had not been introduced.

OBR expects universal credit to save the Department for Work and Pensions (DWP) just £1 billion by the time it is fully rolled-out. This compares poorly with the £63.2 billion that the benefits replaced by UC would have cost.

universal creditSo, what are the figures involved? Well, the saving in benefits paid out is estimated to be £10.7 billion, but that is not the entire story. The report says additional costs of UC will be a full £9.6 billion.

To me, that means that millions have been been stolen out of the hands of claimants. Instead, they are being used, partially at least, to line the corporate pockets of outside contractors. Disgusting, but I have ceased to be surprised by the actions of this government.

In particular, OBR says low income self-employed claimants will be the hardest hit by UC.

The report goes on to say, rather worryingly; “work coaches in UC have considerably more discretion in the conditions they can impose on both in-work and out-of-work claimants and in the sanctions that they can impose for failure to meet those conditions.”

Universal credit history repeated

As if existing sanctions are not hated enough, it seems UC claimants seem fated to face worse conditions and sanctions.

I was one of the recipients of incapacity benefit(IB) who successfully completed the move to employment and support allowance support group. Many IB claimants were not so fortunate but the government’s aim of slashing benefit costs failed dismally. All it did was to hurt the lives of many thousands of claimants.

Now we see history being repeated with ministers trying to use UC to replace six means-tested benefits. These are income-based jobseeker’s allowance, housing benefit, working tax credit, child tax credit, income-based employment and support allowance, and income support.

At the same time, the gradual introduction of personal independence payment (PIP) to replace disability living allowance (DLA) continues to terrorise those still receiving DLA-

Campaigning and information website benefitsandwork.co.uk says: “It seems clear that an enormous amount of hardship and fear is being caused by yet another failed ‘reform’ to the benefits system in the transfer to UC.

“Will successive governments ever learn from their mistakes?”

Regretfully, it appears not.

* * * * *

Affiliate disclaimer: This affiliate disclosure details the affiliate relationships of MS, Health & Disability at 50shadesofsun.com with other companies and products. Read more.

* * * * *

50shadesofsun.com is the personal website of Ian Franks, a freelance medical writer and editor for various health information sites. He enjoyed a successful career as a journalist, from reporter to editor in the print media. He gained a Journalist of the Year award in his native UK. Ian received a diagnosis of MS in 2002 and now lives in the south of Spain. He uses a wheelchair and advocates on mobility and accessibility issues.

* * * * *

Note: Health-related information available on 50shadesofsun website is intended for your general knowledge only and is not a substitute for medical advice or treatment for specific medical conditions. I am not a doctor and cannot and do not give you medical advice. You should seek prompt medical care for any specific health issues and consult a doctor before starting a new diet or exercise programme. Any opinions expressed are purely my own unless otherwise stated.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s