Skip to content
CityAM
Main navigation
  • News
    • News
      • Latest Business News
      • Economics
      • Politics
      • Tech
      • Banking
      • FTSE 100 Live
      • Retail
      • Insurance
      • Legal
      • Property
      • Transport
      • Markets
    • From our partners
      • AON
      • Bayes Business School
      • Canada BIDs
      • Central London Alliance CIC
      • Destination City
      • Halkin
      • Olympia
      • Inside Saudi
      • Tottenham Hotspur Stadium
      • Santander X
      • YEAR SIX Dividend
    • Featured

      Healey condemns Reeves: ‘Our adversaries do not follow timetables set by the Treasury’

      Massachusetts Governor Maura Healey speaking at a press conference, addressing state initiatives and policy updates

      Submit a story

      Tell us your story.

      Submit
  • Opinion
  • Sport
    • Latest Sports News
      • Sport
      • Sport Business
    • From our partners
      • The Morning Briefing: SBS x CityAM
      • Aramco Team Series
      • LIV Golf
    • Featured

      Brits urged to back UK pubs during World Cup amid booking surge

      Getty Images logo on a smartphone screen against a blurred background, representing media and stock photo industry branding.

      Submit a story

      Tell us your story.

      Submit
  • Life&Style
    • Life&Style
      • Life&Style
      • Toast the City Awards
      • The Magazine
      • Travel
      • Culture
      • Motoring
      • Wellness
      • The RED BULLETiN
      • Do it with Shared Ownership
      • Media Speak Hub
    • Featured

      Old Pulteney releases 50-year-old whisky for 200th anniversary

      Old Pulteney 50-Year-Old single malt Scotch whisky bottle with elegant packaging on display, highlighting luxury and craft...

      Submit a story

      Tell us your story.

      Submit
  • Investec
  • Events
  • Latest Paper
Monday 08 June 2015 6:23 am

Universal credit could make working less appealing for some, report claims

By: Ashley Kirk

Add as a preferred source on Google

The government's reforms to Britain's welfare system may in fact be making it more attractive for some in society to not work, according to a new report. 

Research conducted by the Resolution Foundation indicates that universal credit, the Tories' flagship benefits programme, may mean that some groups find it more attractive to reduce the number of hours they work. 

The report concludes that for these groups – especially women – the reduction in their employment earnings would largely be cushioned by benefits. 

Read more: Universal Credit: What you need to know about the benefits scheme being rolled out today

The report says that "multiple changes" since the policy's conception have changed its expected impact, including changes to the legislation as well as a budget that is lower than expected. 

Single parents and second earners in two-income couples, the report claims, need more help under the system, since they are most likely to respond to work incentives. It says that a second earner making £10,600 would see a 65 per cent reduction in the rise in their net household income under universal credit.

The report says:

The proposed large-scale extension of conditionality to the working population on low incomes is completely untried and untested, with little international evidence to support its design.

And even if – after much development, which is only now starting at a small scale with simple JSA-equivalent cases – it proves effective at stopping people working too few hours, it makes no attempt to encourage or help people move beyond minimum wage jobs. In our view, a different approach is required.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Politics

Trending Articles

  • As it happened: FTSE 100 relief rally runs out of steam as BP and Shell weigh; Oil hits three-month low

  • Rolls-Royce shares surge as SMR unit bags multi-billion pound Swedish nuclear contract

  • Rathbones to suspend thousands of client account inflows after FCA probe deals £530m blow

  • London Tech Week sums up everything wrong with UK tech

  • KPMG’s Summer Friday half-day rollback signals deeper woes for Big Four giants

More from CityAM

  • Tories target £1bn benefits loophole in welfare crackdown

    Politics
    Conservative Party leader Kemi Badenoch is preferred as Prime Minister to Keir Starmer. Photo: PA
  • Milburn review: Youth unemployment crisis costs £125bn a year due to ‘broken system’

    Economics
    Alan Milburn speaking at a business conference, wearing a suit and tie, discussing economic strategies and policies
  • Pacific Prime Unveiled the Global Employee Benefits Trends Report 2026

    Business Wire
  • KBRA Releases Research – Spanish RPL RMBS: Resilient Performance and an Established Asset Class

    Business Wire
  • ‘Alarming’ lack of private credit understanding in finance bosses

    Banking
    Ken Griffin speaking at a business conference representing Citadel with a backdrop of financial charts and audience in view
  • Private credit is crowded — but disciplined capital still knows where to look

    AD
    RK Hero Direct Lending session showcasing financial experts discussing modern lending strategies in a professional setting
  • ‘Economic catastrophe’: Social media and welfare state ‘to blame’ for youth unemployment

    Economics
    Alan Milburn delivering a speech at a press conference, wearing a suit and tie, addressing economic policy issues.
  • Going for growth? Labour groups set out competing visions for economic strategy

    Economics
    Keir Starmer addressing backbench MPs in a parliamentary setting, highlighting political strategy and leadership discussions.

CityAM Canada — business, markets and opinion for Canadian readers.

Sections

  • Business
  • Markets
  • Tech
  • AI
  • Economics
  • Opinion
  • Cities

Company

  • About
  • Contact

Legal

  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 CityAM Canada. All rights reserved.
Terms · Privacy · Cookies