IFS Press Releases

Universal Credit: much to welcome, but impact on incentives mixed

Date: 12 January 2011
Authors:
Keywords: benefits, taxes

The Universal Credit will dramatically change the welfare system for working-age adults. If successful, it will make the welfare system more effective and coherent. But it will create winners and losers in the process: couples with children will gain from it and, when transitional protection expires, lone parents will lose. This is one of the key findings of a preliminary analysis funded by the ESRC and published today by the IFS.