Isle of Wight Housing Benefits Department – WRITTEN EVIDENCE (EUC0006)

The economics of Universal Credit

How well has Universal Credit met its original objectives?

The caseload on the Isle of Wight has not reduced significantly with only 890 cases being migrated in 16 months.  We have approximately 30 cases migrating over to UC a month, so progress is very slow on the Island.

Were the original objectives and assumptions the right ones? How should they change?

Cannot comment as no evidence

What have been the positive and negative economic effects of Universal Credit?

Answer: - Two week run on paid by Housing Benefits has helped customers, however that still leaves three weeks where the claimant has no money

We have seen an increase in UC customer applying for Discretionary Housing Payments – see below for figures: -

UC DHP’s = £20,549.31 for 2018/19

UC DHP’s up to & including 23/02/2020 = £85,197.45

What effect has fiscal retrenchment had on the ability of Universal Credit to successfully deliver its objectives?

Cannot comment as no evidence

Which claimants have benefited most from the Universal Credit reforms and which have lost out?

Cannot comment as no evidence

How has the world of work changed since the introduction of Universal Credit?

Cannot comment as no evidence

Does Universal Credit’s design adequately reflect the reality of low-paid work?

Cannot comment as no evidence

If Universal Credit does not adequately reflect the lived experiences of low-paid workers, how should it be reformed?

Cannot comment as no evidence

21 February 2020