The UK Coalition government set out its plan for what is being claimed as the most radical reform of welfare benefits since the beginning of the ‘welfare state’. The aim is to simplify the benefit system while setting strict conditions for the continued receipt of benefits. The reforms will consolidate the various forms of benefit and support into a new, single universal benefit. The specific changes include:
- Paying a single universal benefit and scrapping individual benefits, such as tax credits, housing benefit and job-seeker’s allowance.
- A single monthly payment to claimants.
- A strict regime to encourage the unemployed and inactive to seek work, including loss of benefits for between four weeks and up to a maximum of three years for refusing to take a job or community work.
- A guarantee that earnings from work will be greater than benefits from not working. This will be achieved by adjusting the marginal deduction rate, which is the adjustment made to benefits to take into account rising earnings from work. This adjustment will create a clearer incentive to work, and help reduce the poverty and unemployment traps, which encourage individuals to remain workless.
For more on the Universal Credit
5 Largest Bull Markets in Recent History A bull market is when a stock market improves and performs beyond the expectations of those who invest in it. Bull markets generally aren't recognized as bull markets ...
U.S. Job Losses During the Covid-19 Pandemic by Ethnicity Effects from the Covid-19 pandemic have been devastating and are proving to be a game-changer in the 2020 world economic setup. Indeed, the pandemic has led ...
Understanding The Economic Model of Human Behavior While based on traditional economics, the economic model of human behavior is conceptually challenged by the core of behavioral economics. Using this model, we can also better understand ...
What Is An Inverted Yield Curve Recession The yield curve is a visual illustration of yields for similar bonds that have varying maturities, also known as an interest rate term structure. In a standard yield ...
Calculating Yield to Maturity Yield to Maturity (YTM), also called book yield or redemption, is the hypothetical interest rate or rate of return of a bond and other fixed-rate securities. The YTM is based on the ...
Common Global Macro-Economic Indicators Global macroeconomic indicators are statistics that represent the condition of a certain country or region’s economy. There are several types of global macroeconomic indicators, each one unique in their meaning, role, ...