Universal Credit could get new ‘contribution element’ to help out of work Britons | Personal Finance | Finance

A new report has called for the introduction of a so-called minimum living income, with benchmarks for different types of households. It is thought such a policy could be similar to the National Living Wage, which has varying rates for people of different age groups.

The report has been written by Bright Blue, a Tory think-tank, and guided by a cross-party commission of politicians.

Stephen Crabb, a former work and pensions secretary who helped guide the report, has said the current welfare system has “significant gaps and weaknesses”.

The report therefore argues a minimum living income would help tackle this, recommending the Government’s committee on social security could then recommend minimum levels of payments.

The Bright Blue report will also call for Universal Credit claimants to be given a new digital platform.

READ MORE: Expats may see state pension, healthcare and pensions impacted

While ItsOkayWhenWeDo It stated: “More benefits that workers won’t be entitled to, then?”

The Government is also looking at ways to get people back to work, including those with a disability.

Earlier this week, the Prime Minister’s official spokesperson said an upcoming white paper would “shape” the Government’s approach on the matter.

The Times reported plans being considered by Government ministers which would allow disability benefit claimants to return to work, but still keep some of their payments.

An income tax break of six months to a year for over 50s who return to work has also been floated as a potential policy.

It is not yet clear whether these specific plans will come to fruition, however, Mr Sunak has frequently mentioned getting Britons back to work.

A DWP spokesperson told Express.co.uk: “The UK welfare system offers a vital safety net to millions of people, enabling them to support themselves and their families while building towards financial independence through work when possible.

“We recognise the pressures of the rising cost of living which is why we have delivered £1,200 of direct help to those most in need this financial year, including £400 towards energy costs.

“Our Energy Price Guarantee is saving around £900 for a typical household over winter and our Household Support Fund is helping people with essential costs, while the most vulnerable households will also receive up to £1,350 in additional direct support in 2023/24 and benefits will be increased in line with inflation at 10.1 percent from April.”


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