DWP told to make 'needed' Universal Credit change for 2.3 million people

Univeral Credit needs to have alterations if it is to tackle the challenge of people being out of work long-term, it has been warned.

The Department for Work and Pensions has been told to CHANGE Universal Credit to battle the rising tide of sickness. Univeral Credit needs to have alterations if it is to tackle the challenge of people being out of work long-term, it has been warned.

A think tank says the DWP needs to introduce changes to cope with the growing challenges of an older and sicker population. The Resolution Foundation said: "Whoever wins the election will be governing a 'Universal Credit Britain', as the final stage of what has been the biggest benefit reform in a generation is due to end with a system covering seven million families by 2029."

The report said that seven in 10 (71%) families who were eligible for either UC or legacy benefits were worse off in real terms on UC in 2024/25 than they would have been under the legacy system in 2013/14. The number of benefit claimants who are out of work because of ill health has almost doubled since UC was first introduced, to reach 2.3 million.

READ MORE Prince Harry 'furious' at heartbreaking leak and 'only two things' can calm him

"Universal Credit also shifted the make-up of support for people with ill health and disability, with the result that disabled people are among the biggest losers, on average, from the reform," the report said. "Single people with a disability that prevents them from working - ie those who would previously have been in the Employment and Support Allowance (ESA) support group and in receipt of Personal Independence Payment (Pip) - are around £2,800 per year worse off on Universal Credit in 2024/25 than on legacy benefits once any transitional protection has been eroded or lost.

"This is because the element of Universal Credit covering ill health is set at a lower rate than the combination of ill-health support and disability premiums in ESA." Alex Clegg, economist at the Resolution Foundation, said: "Whoever wins the next election will be governing a 'Universal Credit Britain', with seven million families eventually receiving the new benefit.

"It is vital that they understand both the system they will inherit and the population that relies on its support. A lot has changed since Universal Credit was first introduced back in 2013. The working-age benefit system is less generous, with entitlement down by £14 billion. And while the 2010s' problem of high unemployment have faded, Britain faces new challenges from an older and sicker population.

"Compared to the old system, Universal Credit offers greater support for renters and stronger incentives to enter work. But its original design did not anticipate there being over two million claimants with poor health or disabilities. Alongside efforts from the NHS, education, and labour market policy to address the drivers of ill health, UC will need to change to tackle Britain's new challenge of long-term sickness."

A Department for Work and Pensions spokesperson said: "Universal Credit has proven itself as a modern benefits system fit for the future, providing a vital safety net to millions while helping people move into work faster. We boosted benefits by 6.7% this month, worth £470 for 5.5 million households on Universal Credit.

"Work is the best path to long-term financial security and through Universal Credit, our £2.5 billion Back to Work Plan will help over a million people - including those with long-term health conditions - find, stay and succeed in work."