DWP Universal Credit reforms leave 1.6m claimants £2,000 worse off

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The system has created winners and losers, with some people gaining £2000 a year, and others losing a similar amount

Over a million people across the UK now find themselves £2,000 poorer annually as a result of a decade's worth of benefits reforms and clampdowns, according to data from the Institute for Fiscal Studies .

Part of these "significant" transformations included heightened conditionality, involving things like work coaching and work-search diaries, coupled with the removal of some employment barriers embedded in legacy benefits. For instance, earning more than a certain threshold previously led to a drastic 70 per cent cut in the monthly income of claimants.

Meanwhile, a smaller segment of the population, about one in ten households, are seeing their benefits slashed by as much as £4,000, amid rising costs for essentials like food, housing, and energy. These are primarily households with one member under and another over the state pension age. The demographic hit hardest by the drop in service enrolment after the switch are those receiving tax credits; a third of those expected to migrate this year have completely opted out of the system. The IFS has pointed out an especially "vulnerable" group scheduled for transfer later this year.

 

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