This is an extract from a blog by Gareth Morgan, who has been modeling in detail the effects of Universal Credit. The original can be found here the below are short extracts.
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Lie Number 1 there will be a New Simple Benefits System Universal Credit is very simple and will ensure that work always pays and is seen to pay. The Rt Hon Iain Duncan Smith MP The Truth Universal Credit and the rest of the future system(s) is not very simple Universal Credit, the new simple benefit, is clearly more difficult to understand than existing means-tested benefits (I speak as someone who has now given three rounds of training on this and seen the difficulties even experienced advice workers have with the new scheme, as well as having implemented the rules in our Future Benefits Model). <snip> In short the benefits system in the medium term will be more complex and difficult to understand than the current system. Indeed there will not be one current system in the future or even two. Because the changes to benefits are being introduced gradually, over several years, during the next few years, some people may, in similar circumstances,
Lie Number 2 Youre always better off in work UNIVERSAL CREDIT It will be withdrawn at a constant rate, so that people know exactly how much better off they will be for every extra hour they work, to ensure that work always pays more than benefits The Rt Hon Iain Duncan Smith MP, speech The Conservative Party Conference 2012 The Truth Youre not This is simple enough to demonstrate as a blatant untruth. In Universal Credit, help with mortgage interest payments will not be given to anyone with any earnings. Even a penny a week will disqualify someone. <snip> Someone getting that amount of (mortgage) help will be encouraged to take any work that they can find; indeed under the new sanctions and conditionality rules, they will lose all their benefits for increasing periods if they dont take the work. If they take a part time job paying £50 a week they will lose all their mortgage support immediately. Result they will be £89.61 a week worse off because they are working. Remember what Mr. Iain Duncan Smith said; Universal Credit is very simple and will ensure that work always pays and is seen to pay. Lie Number 3 Older People are Protected |