Receiving monthly benefits could encourage people to maintain better control of their finances,but many of the poorest households will end up worse off
Universal credit is undermining even the Tory ambition to manufacture work pay
George Osborne’s U-turn on the controversial tax credit cuts came as a welcome relief to the poorest families. Although he offered no similar reversal on universal credit, which could see a drop in income of £1000 a year for working households in 2020, and the government hopes the new benefit system will both improve financial inclusion and encourage more people into work.
Universal credit combines six core benefits and tax credits into a single payment made monthly into a nominated household bank account. Everyone in receipt of universal credit will need a transactional bank account,and the government hopes that monthly payments will help people develop the mindset of budgeting on a monthly basis, as they would need to carry out once in work. Continue reading...
Source: theguardian.com