With the start of Universal Credit, big changes are coming to the welfare system. It is a welfare payment that blends six different payments into one. This change is supposed to make things easier, but it is making a lot of people worried, especially disabled people who have not been able to work for a long time.
Because of these changes, new study shows that these people may have more trouble with their money. Every year, they might lose about £2,800. What does Universal Credit mean for disabled people? How is it meant to help? Why are some people worried about it?
Financial Impact on Disabled Individuals
People who can not work because of a long-term disability often have trouble with money and are the ones most affected by changes in government policies. Recently released research by the Resolution Foundation shows that these people will lose a lot of money because of the switch to Universal Credit. Each year, they will lose about £2,800.
By 2028, Universal Credit is expected to give out a total of £86 billion every year. This amount is a lot less than the £14 billion that would have been given out under the old method during the fiscal year 2013-2014. People who are against Universal Credit say that it might hurt crippled people. Although the government says that Universal Credit is a better way to help people who need it.
Arguments by the DWP
It is also worth noting that the Department for Work and Pensions (DWP) has increased benefits by 6.7%. This is seen as a good move that will help families deal with rising costs of living. Only people who are getting more benefits and have been having a hard time making ends meet have been happy about this rise.
The Resolution Foundation and other groups like it have said that the rollout of Universal Credit hurts vulnerable groups. In spite of what the system was meant to do, it has made it harder for people who need money the most to get it. The Resolution Foundation is setting up live and engaging webinars so that people can talk about these worries and the effects of the changes to Universal Credit.
About 70% of working-age families who are qualified for means-tested benefits are expected to lose out because of Universal Credit. In other words, they will have less money than they did before the changes. This group of people could face more poor and money problems if this prediction comes true.
The program is changing how social security works in the UK as it is put into place. It is still hard to find the right mix between keeping the system up to date and helping people who need it.