Switching millions to universal credit poses real threat of ‘poll tax' moment

28th October 2018

Universal credit is suddenly grabbing all the headlines. John Major has warned that it could represent a poll tax moment for the government. Gordon Brown has spoken in apocalyptic tones about it plunging a million more children into poverty and causing a chaotic summer of discontent. There are reports of growing concern within the cabinet.

Yet not much has changed in the past year. No new cuts have been announced. Quite why the political and media classes have only just woken up to what is happening, I'm not sure. Whatever the reason for the present kerfuffle, the battery of recent pronouncements has created far more heat than light. A bright light, though, is needed. Universal credit is a very big deal, indeed.

Replacing six separate, means-tested benefits and tax credits, it eventually will pay out more than £60 billion a year. That's more than we spend on all the armed forces and the police combined. About seven million families will receive it. That's something like a third of all working-age households. Even more will receive it at some point in their lives. Reflecting the scale and complexity of the task, it has already been seven years in the preparation and it will be at least another five before it is fully rolled out.

So what is the fuss all about? At least three different issues are being conflated and confused.

Read the full article at https://www.ifs.org.uk/publications/13506