“Universal Credit red tape cull needed to help parents and the self-employed”


Making Universal Credit (UC) easier to use could boost employment and prevent the risk of penalising families whose earnings and outgoings don’t fit into a neat monthly pattern, according to a new report published today (Monday) by the Resolution Foundation.

The think-tank’s nine-month review of Universal Credit considers how the once-in-a-generation welfare reform is equipped to meet the UK’s current and future welfare challenges.

The report examines the structure of UC and the trade-offs between supporting low-income households, improving work incentives and reducing costs to taxpayers.

The report highlights how more than 800,000 self-employed workers moving onto UC will have to start reporting their income on a monthly basis, rather than annually through HMRC self-assessment. This will create a huge bureaucratic burden and could hit some low-earners financially.