Universal Credit (UC) represents a radical transformation of the current working age benefit system, the biggest reform in a generation. There are two key principles at the heart of this reform:
These laudable aims are why UC, for all its recent problems, still enjoys cross-party support.
WHICH BENEFITS?
The new scheme places six key in- and out-of-work benefits into a single system:
It will not replace all working age benefits. So child benefit, disability living allowance andcouncil tax support, among others, are unaffected.
WHO IS ELIGIBLE?
Currently around 600,000 families are on the system and most of these are single, unemployed people. But this is starting to change. The DWP is planning for all new benefit claims from all family types – single people, couples with children, renters and people with ill-health or disability – to be on UC from the end of next year. The final stage will involve transferring existing benefit claimants to the new system. The roll-out is forecast to be complete at some point in 2022.
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