Abstract
Drawing on the findings from their wider research study, this report by Dr Rita Griffiths and Dr Marsha Wood explores the interaction between Universal Credit (UC), earnings, ‘passported’ benefits and other means-tested help for working claimants.
The research found that while all participants had levels of earnings low enough to entitle them to UC, only in rare instance did UC receipt of itself automatically qualify them for help. Not only were application processes typically onerous and time-consuming, but many working claimants were ineligible for support due to the very low earnings thresholds which applied to most of the schemes. Others had variable earnings which meant they dipped in and out of eligibility. Those whose earnings rose above a certain level could find themselves financially worse off, undermining UC’s fundamental goal to ‘make work pay’. These ‘cliff edges’ discouraged some people from working longer hours and earning more.
The research found that while all participants had levels of earnings low enough to entitle them to UC, only in rare instance did UC receipt of itself automatically qualify them for help. Not only were application processes typically onerous and time-consuming, but many working claimants were ineligible for support due to the very low earnings thresholds which applied to most of the schemes. Others had variable earnings which meant they dipped in and out of eligibility. Those whose earnings rose above a certain level could find themselves financially worse off, undermining UC’s fundamental goal to ‘make work pay’. These ‘cliff edges’ discouraged some people from working longer hours and earning more.
| Original language | English |
|---|---|
| Place of Publication | Bath |
| Publisher | Institute for Policy Research, University of Bath |
| Number of pages | 82 |
| Publication status | Published - 30 Sept 2024 |
Acknowledgements
We are indebted to the participants who took part in the wider study from which findings here are drawn, some of whom have been involved in our research about Universal Credit for more than five years. Their commitment and steadfastness in staying the course over long periods of data collection have been invaluable in providing us with a unique and revealing insight into the lives of Universal Credit who are employed or self-employed.We would also like to thank the members of our advisory group, listed below, who gave generously of their time and expertise. Particular thanks go to Jane Millar for her ever-helpful expertise and advice. Maria Jose Ventura Alfaro, our researcher, and Jo Porter, our long-standing transcriber, were both key members of the project team.
We are also grateful to abrdn Financial Fairness Trust for their generous funding and to Karen Barker for her advice and support
Funding
We are also grateful to abrdn Financial Fairness Trust for their generous funding and to Karen Barker for her advice and support.