An Unnecessary Role

embracing false choices

Universal credit won’t work for London

with one comment

The Independent this morning reports on research commissioned by London Councils into the impact of the universal credit. The report is damning in illustrating that current plans for London will leave people worse off in London than in the rest of the country and will provide little incentive to work as entering work will leave people worse off than staying on the benefit.

Families in London – where child care and housing costs are significantly higher – will be particularly badly affected, according to the analysis commissioned by London Councils, an umbrella organisation representing all local authorities in the capital.

It found that a single parent with two children living in the capital would be £5,168 a year worse off under the Universal Credit if in a full time job on a minimum wage, using childcare, than under the 2011 system. Nationally a lone parent in the same situation would be £4,300 a year worse off.

A couple who both work full time and have two children will be £2,333 a year worse off in London and £1,528 nationally.

The report can be found here and I urge to read at least the Executive Summary. It is difficult to argue with the aim of simplifying the benefits system, but with these reforms the coalition appears to be making the same mistakes I highlighted over housing benefit and pupil premium. Assuming that Government knows that costs of labour, property and other resources vary across the country, what on earth can be the reason for persisting with this flawed appraoch?

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Written by samelliot

June 13, 2011 at 11:03 am

Posted in London, Welfare

One Response

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  1. […] turns out that I couldn’t have be more wrong. This London Councils report  indicated that the Universal Credit reforms did not reflect the cost of living in London and […]


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