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Will we see real reform?

Will we see real reform?. Tom MacInnes , New Policy Institute. Did the changes have to happen? . Previous system far from perfect Very complex -would not be anyone’s design Very high “tax” rates for some Universal credit aimed to deal with these flaws Introduces its own complexity

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Will we see real reform?

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  1. Will we see real reform? Tom MacInnes, New Policy Institute

  2. Did the changes have to happen? • Previous system far from perfect • Very complex -would not be anyone’s design • Very high “tax” rates for some • Universal credit aimed to deal with these flaws • Introduces its own complexity • Not clear what problems other changes are solving

  3. Will changes “make work pay”? • The point of UC is to do so • £ for £ addresses some of these problems • Mainly for workless families to move into work • Less so for single earners becoming two earners

  4. Who has been most affected? • Disabled people, by both disability related cuts and cuts in general • Last year, 300,000 families were affected by three cuts • 1.5m people were affected by two cuts, around 900,000 by one cut • These changes have happened before UC has even started

  5. Will UC really happen? • Some of it is already happening - “culture change” around conditions, sanctions • Change in payment of HB could happened regardless • Entirely new system needs designing, will be very expensive • This is a loss and a shame – a good opportunity wasted • Could see local variants, along the lines of CTS in England, shift risks to local level • Scotland and Wales may be different, depends on decisions of government

  6. Will the changes be a success? • Very much depends on your definition • So far we have not seen any reform – only cuts • But the losses are huge – holes in the safety net, arbitrary local differences, a sanctions system in disrepute

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