Universal Credit: Massive Reform to Benefits System Launched

29 - 04 - 2013

A major shake-up of the benefits system began today as the first claims for universal credit payments were made.

 Universal credit aims to simplify the benefits system by merging income-based jobseeker's allowance, income-related employment and support allowance, income support, child tax credit, working tax credit, and housing benefit into one monthly payment.


The pilot began today in Ashton-under-Lyne in Greater Manchester where single jobless people became the first to claim the new benefit, which will eventually be rolled out to nearly eight million people.


The primary objective of universal credit is to encourage people into work as the new system aims to ensure that people are always better off working.

Work and pensions secretary, Iain Duncan Smith said the new system was about ‘changing people’.

‘It's about trying to help those who are the most vulnerable to get ready for the world of work, and that will improve their lives dramatically,’ he added.

Critics have raised concerns over the potential for incorrect payments as the system relies on employers providing accurate information about a claimant’s earnings using real time information (RTI) payroll reporting in order for claimants to get what they are entitled to.

Here, at Foremans, we are operating real time information payroll on a daily basis. If you would like more information about our payroll services, call us on 01244 625 500.






Foremans LLP Umberlla
Foremans LLP