Features

Universal Credit: Part 4 - An incentive to work?

Will Universal Credit make parents paying for childcare better or worse off if they increase their hours, asks David Finch at the Resolution Foundation

Families with young children are central to the design of Universal Credit. Many are likely to experience a period in which at least one parent is moving in and out of work. UC should help ease those transitions by removing the need to re-claim support when such changes occur.

Getting the design of this system right is hard. These families are likely to have changes in circumstance and receive multiple elements of UC (those for children, housing and childcare costs). The question of whether work pays will be particularly relevant as there is the added factor of how much time to spend at home with their young children.

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