Starter for 10: Think tank report urges Stephen Crabb to take on a Universal Challenge
Stephen Crabb may just be settling into his new role as secretary of state for work and pensions, but a report published today is urging him to take on George Osborne and crew over universal credit.
The study by think tank the Resolution Foundation warns that universal credit risks not meeting the goals it was proposed for if the Treasury continues to put through changes, arguing that the revamped system – which was designed to roll six benefits into one – could wind up becoming overly complicated and do little more than reduce the government's bill for benefits.
The report also warns that the universal credit as it currently stands would see 2.5m working households worse off by an average of £41 a week, eroding the incentive for some to work.
In light of its findings, the Resolution Foundation is urging the work and pensions secretary to switch the focus of the system to those who are most likely to respond to incentives to work, provide greater practical support for in-work progression of earnings and address concerns regarding how universal credit will work in practice.
"As universal credit begins the roll-out of its full service this month, now is the right time for the new work and pensions secretary to take stock of progress to date," said David Finch, senior economic analyst at the Resolution Foundation. "It is a reform with lots of potential, but it has veered off-track over recent years, particularly following a series of sharp cuts in support to working families.
"With universal credit’s main goal of making work pay now under serious threat, the secretary of state should reclaim the project from the Treasury."
According to government timetables, universal credit will be rolled out in full by the end of 2021. Five job centres will start to operate a full universal credit offering this month, with another five due to join the programme a month later. The universal credit is available to all single jobseekers in all job centres as of today and over 450,000 people have made a claim so far.
A Department for Work and Pensions spokesperson said: "The reality is that universal credit – which is now in all jobcentres across the country – is transforming lives, with claimants moving into work faster and earning than under the previous system.
"For the first time we are also helping people to progress in their careers, and for families we are removing one of the biggest barriers to getting into work by paying for up to 85 per cent of eligible childcare costs – something which was ignored by the Resolution Foundation."