Universal Credit the government's flagship scheme for reforming the welfare system and attempting to ensure that people are always better off in work than on benefits.
The scheme is designed to make welfare simpler by combining the following benefits into a single monthly payment:
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Child Tax Credits
- Working Tax Credits
- Housing Benefit
Work Secretary Iain Duncan-Smith has said the scheme will save the government £38 billion by 2023, although it has also come in for criticism from MPs and campaigners.
Government attempts to set up Universal Credit scheme have already wasted £34 million according to a damning National Audit Office report.
Universal Credit is to replace six separate means-tested benefits. Here we look at how the changes will affect you.