The Spectator

Universal Credit and the future of the welfare state

[Getty Images] 
issue 13 February 2021

Amid the many failures of public policy during the Covid crisis, one success has gone largely unnoticed. The Universal Credit system coped with a huge uplift in applications without breaking down. In February last year 2.6 million households were signed up; six months later that had swelled to 4.6 million. Some 554,000 people made new claims in the first week of lockdown, ten times the normal levels. For a benefit which not so long ago was being damned for the poor execution of its rollout, it is remarkable that the system coped.

Its unexpected success offers plenty of lessons for the future of the welfare state. The digitisation of the system, controversial at the time, enabled the service to be delivered to those in urgent need of help. Combined with the furlough scheme, the massive expansion in Universal Credit has succeeded in staving off an explosion in poverty which otherwise could all too easily have occurred.

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