Cuts may undermine work incentives in universal credit

A cross-party review of universal credit is being launched amid new evidence that funding for the project has been cut so severely that its original aim to provide incentives for people to get into work could be undermined. Technology flaws, implementation delays and Whitehall infighting have led to deep cynicism about the scheme, which is due to be fully implemented in 2017-18 covering as many as 8 million households. Many critics claim the scheme is dead, but although Labour has been fiercely critical of the way in which universal credit has been implemented, the shadow work and pensions secretary, Rachel Reeves, has not yet said she would scrap the reforms. The expert review, to be chaired by the welfare expert Nicholas Timmins, is being launched by the Resolution Foundation thinktank and will focus on structural redesigns that may be required to restore work incentives. The scheme is currently being implemented on a limited pilot basis in some jobcentres, and that progress is likely to be re-examined in a second report by the National Audit Office before the election. In total, 8 million households – half of them in work – will be eligible for UC, which has been designed as… Read full this story

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