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Delve into the complexities of the Universal Credit system in the UK, its impact on families, particularly the disabled, and the looming uncertainty surrounding its implementation. Are these changes truly designed to "make work pay" or merely a cover for cuts and a flawed safety net?
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Will we see real reform? Tom MacInnes, New Policy Institute
Did the changes have to happen? • Previous system far from perfect • Very complex -would not be anyone’s design • Very high “tax” rates for some • Universal credit aimed to deal with these flaws • Introduces its own complexity • Not clear what problems other changes are solving
Will changes “make work pay”? • The point of UC is to do so • £ for £ addresses some of these problems • Mainly for workless families to move into work • Less so for single earners becoming two earners
Who has been most affected? • Disabled people, by both disability related cuts and cuts in general • Last year, 300,000 families were affected by three cuts • 1.5m people were affected by two cuts, around 900,000 by one cut • These changes have happened before UC has even started
Will UC really happen? • Some of it is already happening - “culture change” around conditions, sanctions • Change in payment of HB could happened regardless • Entirely new system needs designing, will be very expensive • This is a loss and a shame – a good opportunity wasted • Could see local variants, along the lines of CTS in England, shift risks to local level • Scotland and Wales may be different, depends on decisions of government
Will the changes be a success? • Very much depends on your definition • So far we have not seen any reform – only cuts • But the losses are huge – holes in the safety net, arbitrary local differences, a sanctions system in disrepute