Thousands to get £2,800 a year less under new Universal Credit rules

Single people with long-term disability that stops them working will be much poorer after the rollout of the Universal Credit benefit to more claimants.

Thousands of disabled people "will get £2,800 a year less under Universal Credit", it has been warned. Single people with long-term disability that stops them working will be much poorer after the rollout of the Universal Credit benefit to more claimants.

The Resolution Foundation has issued the findings as the managed migration of Universal Credit continues. Universal Credit from the Department for Work and Pensions (DWP) will replace a string of legacy benefits in a Cost of Living move.

More than 7 million people will be covered by the six-into-one benefit change before the end of the next parliament. A single person with a long-term disability that prevents them from working is £2,800 a year worse off, though.

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The Resolution Foundation found all single people with long-term disabilities will suffer this loss of income when the rollout of UC is completed by 2030. “By 2028, entitlements to UC will total around £86bn a year,” the thinktank said. “But this is £14bn less than if the government had kept the 2013-14 benefit system.

“As a result, seven in 10 working-age families eligible for means-tested benefit support will be worse off under ‘universal credit Britain’ than with the pre-reform system,” it added. 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 per cent 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.”

The Resolution Foundation is hosting an in-person and interactive webinar to debate and answer concerns.