Holes in the safety net: the impact of universal credit on disabled people
16 October 2012
A joint report with The Children’s Society and Disability Rights UK on the findings of an inquiry led by Baroness Tanni Grey-Thompson. Whilst many people may be better off under universal credit, this inquiry identified that several key groups would lose out financially under the new system. Up to half a million disabled people could lose out under universal credit once it is fully implemented. This includes:
- 230,000 severely disabled people who live alone, or with only a young carer – usually lone parents with school age children – will get between £28 and £58 less in benefits every week.
- 100,000 disabled children stand to lose up to £28 a week
- up to 116,000 disabled people who work will be at risk of losing around £40 a week.
Existing claimants will not lose out immediately as their current levels of benefit will be protected at point of transfer to universal credit. However, they will have their level of benefit frozen with no increases to take account of rising prices and they may see their support cut immediately if their household circumstances change. New claimants will be affected by this cut immediately.