29/04/2013

New Universal Credit Welfare Introduced

The UK Government's shake-up of the welfare system begins today with the launch of its new universal credit payment.

According to the BBC, the payment will replace a number of benefits and tax credits, including housing benefit and jobseeker's allowance, into one monthly payment.

The first claimants will be in Greater Manchester, but the system will eventually affect almost six million people.

The system will be based on a computer system, with claims being made online.

The new benefit is for working age people looking for work, and will replace income-based jobseeker's allowance, income support, child tax credit, income-related employment and support allowance, working tax credit and housing benefit.

The Government has said the new systems will mean people are better off in work than on benefits. It is also designed to simplify the welfare system and aim to reduce fraud and error by grouping a number of benefits together.

However, some have raised concerns over the shake-up, claiming that a system wholly dependent on a complex computer network may not be able to cope with millions of claims.

They are also concerned that many potential claimants do not have access to the internet.

The only claimants to receive universal credit in the initial stages will be single, new claimants at a jobcentre in Ashton-under-Lyne. Three other pilot projects - in Warrington, Oldham, and Wigan - have been delayed until July, but from October, newly unemployed people will make claims under the new system.

The whole process is expected to be implements by 2017.

(JP/MH)


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