Universal Credit Needs Reform to Address Long-Term Illness and Aging Population: Resolution Foundation

A report from the Resolution Foundation recommends changes to Universal Credit (UC), a benefit payment for working-age people introduced in 2013, due to the increasing number of claimants with ill health.

This number has nearly doubled since 2013.

The government recently announced adjustments to UC to encourage sick individuals to seek work.

The Department for Work and Pensions considers UC an essential safety net.

However, the report suggests that UC needs to be modified to address the challenges of an aging and sicker population.

In January 2023, there were 6.4 million people on universal credit, with nearly 40% of them being employed.

According to a report by the Resolution Foundation, seven in ten families who were eligible for universal credit or legacy benefits were worse off in real terms on UC in 2024-25 compared to 2013-14.

However, this was mainly due to overall cuts in working-age support rather than the design of UC itself.

The Resolution Foundation predicts that there will be seven million families receiving universal credit in the future.

(112 words) The text emphasizes the importance of new leaders in understanding both the improved unemployment system and the aging and sick population that relies on it.

The unemployment rate has decreased from 8.5% in 2011 to 3.8% in 2023, according to a think tank.

However, Mr. Clegg warns that while unemployment has lessened, Britain now faces challenges from an older and sicker population.