This document discusses the next phase of rolling out Universal Credit in the UK. It notes that over 2 million families are expected to migrate to Universal Credit and outlines some core principles for managing that migration, including focusing on the migration itself, having the Department for Work and Pensions bear the financial risk rather than individuals, and only beginning migration when service standards are met. It also discusses challenges around transitional protection for some claimants and the need to reduce pressures on that system by increasing the underlying generosity of Universal Credit payments.

1. Making Universal Credit universal
Getting the next phase of Universal Credit right
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Kayley Hignall,Citizens Advice
Professor Sir Ian Diamond, Social SecurityAdvisory Committee
David Finch, Resolution Foundation
Torsten Bell, Resolution Foundation (Chair)
September 2018
@resfoundation #universalcredit

2. The most difficult phase of Universal Credit is nearing
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3. The most difficult phase of Universal Credit is nearing
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4. The most difficult phase of Universal Credit is nearing
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5. The most difficult phase of Universal Credit is nearing
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6. Yet the potential benefits feel far away
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Two key advantages to Universal Credit:
• Boosting generosity and financial incentives to work
• More working families set to lose than gain
• Financial incentives weakened for single parents and second earners
• Increasing incomes by improving take-up
• Higher payments of £2.9 billion a year for 700,000 families

7. Yet the potential benefits feel far away
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Two key advantages to Universal Credit:
• Boosting generosity and financial incentives to work
• More working families set to lose than gain
• Financial incentives weakened for single parents and second earners
• Increasing incomes by improving take-up
• Higher payments of £2.9 billion a year for 700,000 families

8. Yet the potential benefits feel far away
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Two key advantages to Universal Credit:
• Boosting generosity and financial incentives to work
• More working families set to lose than gain
• Financial incentives weakened for single parents and second earners
• Increasing incomes by improving take-up
• Higher payments of £2.9 billion a year for 700,000 families

9. Over 2 million families are expected to migrate to UC
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10. Core principles to manage migration
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• Focus on migration itself

11. Core principles to manage migration
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• Focus on migration itself
• DWP should bear financial risk of transition not the individual

12. Core principles to manage migration
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• Focus on migration itself
• DWP should bear financial risk of transition not the individual
• Migration should only begin when service standards are met

13. Core principles to manage migration
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• Focus on migration itself
• DWP should bear financial risk of transition not the individual
• Migration should only begin when service standards are met
• Transition simpler cases first

14. How transitional is transitional protection?
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15. How transitional is transitional protection?
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16. How transitional is transitional protection?
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17. How transitional is transitional protection?
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18. How transitional is transitional protection?
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• Transitional protection was always going to be necessary
• Protection creates inequity with naturally migrated families
• That pressure could be reduced by re-investing in underlying
generosity of UC
• Recommend introduction of a disregard to protect people with
short-term earnings volatility

19. Universal Credit in the months and years ahead
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• This Autumn is likely to see a renewed political row
• What matters though is the experience of families involved
in what is inevitably a difficult phase of UC roll-out
• Migration should reduce risks on families and involve
external experts in design
• Crucial in rebooting UC’s reputation and the take-up benefits
it aimed to deliver

20. Universal Credit in the months and years ahead
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• This Autumn is likely to see a renewed political row
• What matters though is the experience of families involved
in what is inevitably a difficult phase of UC roll-out
• Migration should reduce risks on families and involve
external experts in design
• Crucial in rebooting UC’s reputation and the take-up benefits
it aimed to deliver
• ….and obviously solve wider generosity and design
challenges