The interaction between Universal Credit and additional means-tested help for working claimants
This policy brief summarises the findings of research exploring the interaction between UC, earnings, ‘passported’ benefits and other means-tested help.
Drawing on the findings from their wider qualitative longitudinal research study, this policy brief by Dr Rita Griffiths and Dr Marsha Wood highlights the key findings and recommendations of their supplementary report, published in September 2024, which explores the interaction between UC, earnings, ‘passported’ benefits and other means-tested help.
This help is of increasing policy interest due to the vital role the different schemes play in supporting low-income households. Also important to understand is the impact these schemes can have on work incentives when the help is withdrawn as earnings rise. The research found application processes to be onerous and time-consuming. Many claimants were ineligible for support due to the low earnings thresholds of the schemes. A key recommendation is for a comprehensive review to be conducted of the additional means-tested benefits and schemes that sit outside Universal Credit, exploring their interaction with earnings and their effects on work incentives and employment behaviours.
The research was funded by abrdn Financial Fairness Trust.