Universal Credit

What is Universal Credit ?

Universal Credit (UC) is the new benefit which will replace:

  • JSA (Job Seakers Allowance),
  • ESA (Employment and Support Allowance),
  • Income Support,
  • Child Tax Credits,
  • Working Tax Credits,
  • Housing Benefit.

How will Universal Credit Affect People ?

The Universal Credit is one big mistake in itself  and replacing these benefits with Universal Credit is a bad idea because people will now be paid monthly and only one person in the household will receive the benefit. The right-wing government always takes radical changes to policies which affect the majority of the public in a bad way. Monthly payments will be made directly into an bank account which not everyone has and not everyone wants. People will now have to budget for the whole month and act like a scrooge while there is money in their bank account but monitoring it very carefully  to ensure thay have not spent it all one go. This will be a challenge for a lot of people switching from weekly and fortnightly budgeting to monthly. As a lot of people have direct-debits – money going out of their accounts automatically – this will be a real issue for some people as money will almost continuously run out of bank accounts regularly.

Universal Credit

Only the one person in a household will receive this benefit into his/her bank account.  This is a problem for medium to large families which restricts financial freedom and creates domestic financial issues. Not only is it possible that some people in a household do not get on well with each other which is the biggest creator of domestic issues which include stress, anxiety and depression but it also leads to possible fraud and intolerance in the household. If the money goes in one persons bank account in the household and if that person is a bully then the actual claimant may not get their share of the benefit. This opens the door to many routes of fraud such as one person withholding the others money or simply spending it on gambling on their way to the bank. Although Universal Credit reduces the adminstrative workload of the government it creates additional inefficency in the household for someone to go the bank with the actual account holder of the house in case they are financially irresponsible and spend someone elses money in the pub on their way home. There are even lot of people who dont get along in the same family let alone living under one roof as lodgers.

The Universal Credit is a joke . Before it was clear who gets what type of benefit but now everything will be like the old ‘unemployment benefit’ only it is now renamed as Universal Credit . One of the aims of all this is to reduce government administrative work, reduce fraud and make things transparent but does this mean people will have a work incentive ? If the government is reducing the administrative work for the different types of benefits mentioned above then how is it helping people to get into work ? This change in the benefits system does not help people find work or get into work. The people of the nation were not given their chance to give their opinions about the Universal Credit before making these changes.


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