A new report, Building up: the future of social security, uses Understanding Society data to look at the different financial experiences of Universal Credit claimants and non-claimants before and during the pandemic.
Using 2018-19 data from our main survey, and Covid-19 Survey data from 2020 and 2021, the report examines subjects such as:
- who is finding it difficult to manage financially
- the proportion reporting an increase in personal debt
- how many have needed informal support from family/friends
- numbers using a foodbank.
For example, the number of Universal Credit claimants who found it ‘quite’ or ‘very’ difficult to manage before the pandemic was much higher than the rest of the population – 34%, compared to 7.5% – but fell to 20% in March 2021, and 23% in September that year.
The report also shows that 30% of existing claimants reported that their personal debt was increasing at the beginning of the pandemic – compared to 5% of the rest of the population – but the gap narrowed to 11% by September 2021, perhaps due to government interventions such as the Universal Credit uplift.
Bright Blue, which describes itself as “the independent think tank for liberal conservatism”, produced the report with the guidance of a cross-party, cross-sector commission, including Stephen Crabb, the former Secretary for Work and Pensions, and professor of social policy Baroness Lister.
It makes policy recommendations, including a new ‘minimum living’ income, and a centralised Social Security Digital Platform to give claimants greater control over their benefits.
Anvar Sarygulov, Bright Blue’s Head of Research and the report’s lead author, says: “With the economy in trouble in 2023, the government needs to be proactive about strengthening our social security system. Universal Credit provides a strong foundation, but more work is needed to make the system more adequate, more accessible and more fair, and the right reforms can achieve this without breaking the bank.”
More information on the Bright Blue website
Full report (PDF)
Income and expenditureMoney and financesPolitics and social attitudes
