JACK WATSON
The Department for Work and Pensions (DWP) has announced that Universal Credit (UC) will increase in April to match inflation. Universal Credit is a monthly Government payment designed to support people on low incomes or those who are out of work, originally replacing multiple benefits with a single payment. It provides financial support for housing, childcare, disability and caring responsibilities. Alongside the increase, the Government has also announced cuts in certain areas in an attempt to encourage people back into work. However, these changes are unlikely to resolve rising unemployment rates. It is still some form of money – and a substantial amount too.
While Universal Credit plays an essential role for those who genuinely need support, it has increasingly become a system that some people rely on instead of seeking employment. In its current form, UC can function as ‘free money’ for individuals who are capable of working but choose not to. Claiming Universal Credit is relatively straightforward: applicants create an online account, provide bank details and income information, and the DWP verifies eligibility through online checks, documentation and interviews. As a result, any young person who has finished college and is unemployed but fully capable of finding work can qualify simply by falling into the ‘low income and out of work’ category. Unfortunately, this is something I am witnessing first-hand.
Many people I know who have left college and chosen not to go to university are not actively seeking employment. Despite being healthy and able to work, they have successfully claimed Universal Credit and now receive a comfortable monthly income. Because the amount they receive can exceed what they would earn in a part-time job, there is little incentive for them to look for work. Although claimants are required to demonstrate that they are searching for employment by attending job centre interviews, merely turning up is often sufficient to remain eligible. They are supposed to tell their coach they are looking for work, but this does not seem to be monitored strictly and is a point of failure in the system that leads to too many people claiming it when they do not need it. This issue appears to be growing, not just locally but nationally.
The number of Universal Credit claimants has reached a record high, with around 8.3 million people in Great Britain now receiving payments, an increase of over one million in a single year. Of these claimants, approximately 21% are in work but on low incomes while 17% are out of work. Notably, those with no work requirements often due to illness or disability account for just 11% of claimants. This suggests that more people who are capable of working are claiming Universal Credit than those who genuinely cannot, indicating that some individuals may be choosing benefits over employment. As a result, financial support is not always reaching those who need it most.
Another issue seems to be that the unemployment rate in the UK outweighs the number of jobs available, and not all these jobs will be suitable for those who can work – which further increases the likelihood of people claiming Universal Credit as they feel they cannot find the right job for them. This was heavily affected by Covid, which ruined the economy and damaged the working sector. Now, if it ever picks up again, people will not bother to switch to working as we have already created a culture of dependency on the welfare system.
The appeal of Universal Credit is clear. A single person under 25 can receive £316.98 per month, while those aged 25 or over receive £400. Couples receive between £497 and £628 depending on age. In certain circumstances, this income can be comparable to, or even exceed, that of a part-time worker, particularly for young people. These rates are also set to increase in April by at least £50.
By comparison, the average part-time job in the UK pays roughly £300-£900 per month, depending on age and hours worked. This means that doing very little beyond attending appointments can provide similar financial rewards to working, despite employment income being taxed to fund the very benefits others rely on. This creates a sense of unfairness for those who work hard to secure employment.
Universal Credit should not be abolished; it is vital for many people. However, stronger regulations are needed to ensure it supports the right individuals. Payments for those who are out of work but capable of employment could be reduced, while ensuring help remains available for those who genuinely need support, such as those with (genuine) disabilities or caring responsibilities. Universal Credit was originally intended to help people transition into work, not to replace it. In its current form it risks becoming less of a short-term benefit and more of a long-term substitute for employment.
Jack Watson is a 17 year-old schoolboy in Year 12. You can read his Substack about following Hull City FC here. Follow him on X here.
This article (Young People Have Concluded There’s No Point Getting a Job) was created and published by The Daily Sceptic and is republished here under “Fair Use” with attribution to the author Jack Watson
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