Universal Credit Flashcards
(9 cards)
Intro
The government would argue that the introduction of Universal Credit is successfully addressing poverty by getting people into work.
Explain 1
Universal Credit is the Conservative government’s main benefit for supporting low-income people. Younger people get less, while those with disabilities or children get a bit more. It’s paid monthly, like a salary. The idea is that if the payment is low, it will encourage people to find work. The UK Government points out that, before the pandemic, unemployment was low and more people were in work after Universal Credit was introduced.
Example 1
Evidence that the policy has been effective could be the fact that according to Gov.UK, in 2011 before the roll out of universal credit, unemployment was 7.1% whereas it was just over 4% as of September 2023.
Analysis 1
This would suggest that individualistic policies such as Universal Credit were successful in encouraging people back into work. The belief here being that by tackling unemployment, poverty would be reduced. However, this has not been the case with the Trussel Trust arguing that there has been a 123% increase in the use of foodbanks in the UK since the introduction of UC.
Rebuttal
Another policy that the government may argue is successful in tackling inequality is the National Living Wage.
Explain 2
This is because the idea behind it is that being in work should be enough to avoid being in poverty. It puts the responsibility onto citizens to earn the income they need to look after themselves.
Example 2
For example, the Low Pay Commission found that the introduction of the NLW improved earnings by 30% for the lowest-paid workers.
Analysis 2
This shows that this could improve quality of life, reduce dependency on benefits, and increase disposable income for these workers. Therefore, reducing social inequalities.
Link
Overall, both policies have a somewhat positive impact on inequality in the UK, however, both policies have been criticised as it was found that 1.7 million working families experienced a decline in income under UC, and 2 million people in the UK are not earning enough money to be able to sustain a healthy lifestyle, intensifying poverty.
