Universal Credit: Commentary remarks by Tomi Ståhl
the UK’s new working-age benefit
Commentary remarks by
Director of Change Management Tomi Ståhl from Kela
– The Social Insurance Institution of Finland.
– Work and equality point of wiew
”Work is good for all” ”Equality is good for (almost) all”*
• How Universal Credit helps?
2 *Working group on inequality, report 2018, page 20-
Eriarvoisuutta käsittelevän työryhmän loppuraportti, s. 20-
• How Universal Credit affects on
UC is aiming to:
• Smoothen the transition to work (reduce
complexity as a barrier to work)
• Make all work pay, including mini jobs
(tackle the unemployment trap)
• Reduce high marginal tax rates (tackle the
• Reduce fraud and error
• Improve take-up
Aims of reducing
How UC affects on
• Inequality and
UC – aims and challenges
- ”40 per cent of UK working age families will be eligible for UC”
• no longer trapping people in
• providing the
• incentive and
to secure a better future for
themselves and their families…”
• ” Full service survey - About 1,800 UC claimants,
March to Sept 2017, a few headlines:
– Almost all claimed online, just over half without
– About a third found it difficult, especially the
verification of identity online.
– Most understood their work requirements.
– Two-thirds felt confident in managing their
– Around half experienced financial difficulties.
– About half were exceeding their job search
– Of those in part-time jobs, two-thirds wanted to
increase their hours
– 23% in work at point of claim, 40% at eight
- fit for 21 st century?
“We are building a benefits system fit for the 21st century,
- helping more people into work by providing tailored
- more financial support for the most vulnerable
- we are providing extra support for childcare costs,
- offering flexibility to look after children or elderly parents,
- Our reforms take into account flexible working, self-
employment, multiple jobs, the gig economy and societal
- Esther McVey, Secretary of State Work and Pensions, June 2018
excellent ways to
and the situation of
What else should be improved?
- poverty and equality
• Is there enough services to support individuals in
• Is the level high enough or is there many who suffer
• Public opinion, fairness?
– Families with children lose most (19 %)
– Household with at least one disabled child lose
13 % of net income
Efficiency and customer satisfaction
How to improve efficiency?
• Is it digital means; robotisation, AI… or
• How to improve customer satisfaction?
• Digital means…