Financial Inclusion and Universal Credit

Universal Credit is the governments attempt to simplify the welfare and benefits system and is to be introduced in planned stages starting around October 2013.

The main purpose of Universal Credit is to provide a greater incentive for people on benefits to work.

Supporters of Universal Credit hope it will reduce in work poverty by making it easier for people to move in and out of work ending what has come to be known as the benefit trap.

The government hopes that Universal Credit will cut welfare costs, prevent fraud, errors and discrepancies by creating a streamlined system where one payment replaces the current mix of benefits.

There are concerns and warnings that the introduction of Universal Credit system could leave the most vulnerable claimants struggling to cope.

People may have difficulty in claiming Universal Credit this includes worries on ICT use and skills

Adjusting to the Universal Credit system could cause people problems (especially the most vulnerable) with one area of particular concern being changing to monthly budget management where people and families have previously been used to a weekly or fortnightly payment period.

Further information on Universal Credit via the links below: