Janice R. Andrews
A major financial boost for thousands of working-age households that rent has been revealed by a new research by the Resolution Foundation, owing to an increase in funding for Universal Credit. According to the research “In Credit,” working tenants are the main beneficiaries of the weekly payment increase, which effectively addresses the growing issue of rising rent.
The report’s main conclusions show that, in comparison to the old system, a single parent working 30 hours a week at the national living wage may anticipate being about £3,800 richer annually in 2024–2025. Additionally, for the 2.7 million families that qualify in the private renting market, the average benefit over the previous system is £1,200.
Economist Alex Clegg of the Resolution Foundation highlighted the benefits of Universal Credit for tenants, pointing out that it plays a bigger part in offering more assistance and more powerful incentives for work. Clegg did, however, also draw attention to a critical flaw in the system’s original architecture, which failed to account for the sizeable proportion of claimants who were ill or disabled.
The research, which was made public on Monday, April 15, emphasizes how Universal Credit must change to meet the country’s changing needs, especially when it comes to managing chronic illness in conjunction with initiatives in the fields of healthcare, education, and labor market regulations.
The 2013 rollout of Universal Credit, which was first announced in 2010, is scheduled to continue in its entirety regardless of the results of the upcoming election. In spite of early IT infrastructure difficulties, the benefit system has managed to handle record-breaking claim numbers throughout the pandemic.
In light of the ongoing changes in Britain, the research recommends that the future administration conduct a comprehensive evaluation of Universal Credit to ascertain its efficacy in fulfilling the requirements of the populace.
