Question

how did UC cost other than wages​

Answer 1

Answer:

The future of the government’s biggest public sector reform programme, universal credit, rests “on a knife edge” because Treasury cuts have reduced it to an exercise in cost-cutting, potentially leaving millions of working families worse off, experts have warned.

The original aim of universal credit (UC) – to encourage people to work more hours by letting them keep more of their low wage top-ups as their income rises – has been watered down so much that it risks failing to achieve its original purpose, according to the Resolution thinktank.

Resolution, which is chaired by the former Conservative MP Lord Willetts, urged ministers to “reclaim” the troubled policy from the Treasury by correcting its serious design flaws and improving its generosity to claimants.

“The suspicion is that UC has shifted from becoming a vehicle of genuine reform designed to improve jobs and and earnings prospects for lower income workers to a simple exercise in cost-cutting. Any shift must be reversed,” it said in analysis published on Tuesday.

It said the majority of low-paid working families would be “detrimentally affected” by Treasury changes to UC, even when other government policies such as the “national living wage”, cuts to income tax, and extra free childcare for three and four-year-olds are factored in.

The rollout of the so-called “full service” across the UK will start this month for all new claimants in jobcentres in Newcastle upon Tyne, Lowestoft, Rugby, Bath, and Bridgewater, and will take more than two years to complete. The gradual shift of all existing tax credit and benefit claimants on to universal credit is not expected to be finalised until 2021.

Stephen Crabb, the work and pensions secretary, said: “UC is transforming welfare and is central to our vision for our society where people of all backgrounds can earn a decent wage and provide for their families, with claimants moving into work faster and earning more than under the old system. Our focus now is on continuing its expansion to all claimants.”

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