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UC Claimants More Likely To Be In Work Than JSA Claimants, Show Studies

February 16, 2015

Universal credit claimants are more likely to be in work than those on Jobseeker’s Allowance, according to two government reports published over the weekend.

Analysis of nearly 6,000 claimants over the first four months of their universal credit claim shows a percentage point difference of between 3% and 4% in the proportion of universal credit claimants in work compared to those claiming jobseeker’s allowance (JSA).

The Department for Work and Pensions report was published as the government launched the next phase of universal credit, which it calls a ‘national roll out’. Universal credit combines a number of benefits into one payment made direct to households.

The analysis found that universal credit claimants spent on average four days more in work and earned on average £50 more during the first four months, looking at ‘matched’ claimants with similar age and employment histories. 

However the report states that ‘additional discussion and supplementary analysis’ is necessary to clarify whether it is universal credit as a system that is responsible for the improvements.

 

 

 

The report also notes some important factors may have influenced the results, such as certain groups which may have a lower rate of employment being excluded from universal credit, including pregnant women and people without a bank account.

Another potential bias is that JSA claims are processed faster, meaning ‘for two identical claims (one JSA and one UC), it will appear that the JSA claimant took a longer time to find work than the UC claimant’ as, after 5 days, 64% of JSA claims are processed as compared to 57% of UC claims.

The report describes the analysis as a ‘best attempt’ given the available data at this early stage.

Work and pensions secretary Iain Duncan Smith said: ‘The evidence today shows that under universal credit, people move into work more quickly and earn more money, giving them increased financial security.

‘This is a cultural change which will alter the landscape of work for a generation.’

There will be a phased rollout of universal credit from today, starting with more areas in the north west of England and spreading gradually to include all job centres. The DWP expects the majority of claimants to be claiming universal credit by 2017.

Universal credit rollout began in October 2013, starting with Hammersmith Jobcentre, followed by Rugby, Inverness, Harrogate, Bath and Shotton by Spring 2014. The benefit was introduced to pathfinder areas in the north west, initially for single people and then extended to couples in July 2014 and to families with children in November 2014.

2 Comments leave one →
  1. February 16, 2015 11:56 am

    …Work and pensions secretary Iain Duncan Smith said: ‘The evidence today shows that under universal credit, people move into work more quickly and earn more money, giving them increased financial security.

    ‘This is a cultural change which will alter the landscape of work for a generation.’ …

    Believing politicians is flawed logic, especially less than 100 days to a general election.

    See why.

    ONLY 3 PER CENT OF BENEFITS BILL GOES ON UNEMPLOYMENT

    97 per cent of the benefit bill is to people in work and poor pensioners, on the lowest state pension of all rich nations bar poor Mexico, so far, far below the breadline.
    (Source Dame Anne Begg, Chairwoman, Select Committee on Work and Pensions).

    WORK DOES NOT BRING IN TAX TO GOVERNMENT

    The Tories have realised that increased employment is not bringing in more tax, because the jobs being created are below the income tax level.

    THE BIGGEST OF TAX AVOIDANCE SCHEMES

    There is a massive tax avoidance system
    that is the return of the Truck System and now called the salary sacrifice system,
    where staff paid
    part in wages and part in expenses (deductions for admin),
    so ending up far below the minimum wage,
    especially if listed as an Apprentice on only a couple of quid a week,
    unknown to the worker
    who has had no training
    over and above the intial induction.

    This pulls the worker below the lower entitlement level for National Insurance,
    so nil credits towards NI and the employer does not pay NI nor PAYE tax.

    Thus, according to a Tax Barrister, avoiding billions in tax that would fund such as the
    cash strapped NHS.

    This also means nil right to a state pension for the worker.

    UNIVERSAL CREDIT DENIES STATE PENSION PAYOUT

    And one signer of my petition informed that he was given a retirement age of 68, but because his wife was 5 years younger than him, he was not permitted to gain his state pension payout til 73, under the Universal Credit rules.

    STATE PENSION PAYABLE EVEN IF REMAIN IN WORK

    Because the raised retirement age also means that over half of over 60s are within the working poor, who are the bulk of people, of all ages, going to foodbanks today.

    The state pension is payable if remain in work or can retire as have other income than just the state pension.

    Those with state pension payout next year, 2016, are already getting forecasts as low as £55 per week with no top ups or face NIL STATE PENSION FOR LIFE

    See why under my petition, in my WHY IS THIS IMPORTANT section, at:

    https://you.38degrees.org.uk/petitions/state-pension-at-60-now

    And also sign, please, the bigger petition I initially signed
    and then saw the worse that was to come with the flat rate pension,
    as this petition is put to parliament mid March
    before government closes til after May’s election:

    http://you.38degrees.org.uk/p/statepensionlaw

  2. February 16, 2015 11:16 pm

    Reblogged this on Britain Isn't Eating.

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