Universal Credit
Published / Last Updated on 01/10/2010
Universal Credit: Welfare Reform
by Ashley Clark, Director
Work and Pensions Secretary has confirmed that part of the new spending cutting measures, the Con-Lib Government will make changes to the jobseekers benefits in the UK by introducing a “Universal Credit”.
The target is to rid the UK of the “cycle of dependency” by making it more attractive for people to work than not work. Part of the problem is that many people are either better off on benefits or if they do take lower paid work, their benefits are cut by more than they earn.
The government say the proposals will be the largest reform of the welfare system since in started in 1949
.
The 'cycle of dependency' will be removed by using PAYE (pay as you earn) calculations like your tax return to calculate what benefit you are entitled to. This will mean benefits are added to your earned income rather than taken away.
Full details are of course not available yet for “Universal credit” but benefit reform like this is expected to be made law in 2011 and in place by 2012/13 at the earliest.
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