A new policy evaluation case study from Understanding Society focuses on research from a team at the University of Liverpool which suggests that the introduction of Universal Credit was linked to an additional 63,000 unemployed people experiencing clinically significant levels of psychological distress.
The research says that claimants moved onto Universal Credit reported a 6.57% greater increase in phycological distress, after accounting for other factors. This would mean that, across the country, an estimated 63,674 additional people in the UK experiencing psychological distress due to the introduction of Universal Credit. Of these, 21,760 might reach the diagnostic threshold for depression.
Universal Credit set out to replace six existing benefit schemes from April 2013, and the research which evaluated the policy took advantage of two elements in the rollout of the reform:
- the initial focus on those who were unemployed
- the regional staged rollout – starting in the northwest of England.
This allowed the researchers to compare those affected with a control group who had not yet been moved onto the new benefit.
The case study says these results are of interest now because further welfare reforms are planned from 2025, targeted at those on health and disability benefits. As with Universal Credit, these aim to increase employment and save money. The research highlights the need to consider the mental health impact of reforms, particularly in how they are communicated and rolled out – and especially in areas where well-paid work is harder to find.
Read the policy evaluation case study.
This research used Understanding Society Waves 1-8, with special licence access, matched to DWP data on whether Universal Credit was available in the area at date of interview
EmploymentFamily and householdsHealth and wellbeingMoney and finances
