This will improve the people livelihoods thus raising the country’s per capita income. It will basically restructure the way in which benefits are calculated. It improves work incentives by ensuring that individual keep more of their incomes from work by introducing a smooth and transparent reduction of their benefits. The rationale is to improve work incentives by getting rid of the wrong features of the prevailing system. The reduction of benefits leads to a reduction in interaction with agencies thus smoothing the transition to work. The customers will therefore be in a better position to understand their entitlements, making it easy to administer and reducing fraud. The changes in the benefit calculation will restructure the forms of allocations leading to greater simplification of the system, thus an allocation of ?2bn. This will lead to income increase due to reduced fraud and error. As a result, there will be re-distribution of income to households with low incomes which is the long-run net achievement. Eventually, the reduced complexity leads to increased saving in administration costs. The approach will have a great impact on poverty which is a major vice in many states. This is as a result of reallocation of entitlements on low income in-work families and because the approach is simple and leads to a rise in take-up as compared to the current system of benefits and tax credits. The simplicity of the system will invoke less crime in relation to error and fraud. Other areas the approach will have positive results is in relation to: fiscal costs and savings, individual entitlements, benefits entitlements, take-up, income, time and protection. Strengths of Universal Credit One of the other major important strength of the universal credit is that it is caring. The government has been very committed in ensuring that disabled people are fully engaged in the society which included remaining at the work place or coming back wherever feasible. This model was introduced in 2008 for employment and support allowance and it has worked well. It provides extra beneficial components for employees in their work related activities and has supported work groups (Great Britain: Department for Work and Relations, 2010). Cares have continuously been providing an invaluable service to some of the most susceptible people in our communities and the Government has ensured that they the full support they require. According to universal credit the cares will continue to be entitled to national Insurance Credits, to ensure that their financial positions in time of retirement. The government has carefully considered the changes to care’s allowance .It was seriously taken into account during the introduction of the universal credit which has given cares a clearer and a very efficient support for cares. Secondly, a considerable amount of money was added to the universal credit award to assist in meeting cost of mortgage interest and rent. The rent support which was previously given through Housing Benefit has been replaced by Universal credit. This is to aim at providing a more simplified way of providing rent support through Universal Credit in the best way possible. This has protected the vulnerable people from bad encounters such as having large amounts of arrears or being made to remain without homes. This is achieved through allocation of funds specifically to support the citizens in the private–rented sector at levels that have generally made market of rents
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Topic: Current Coalition government’s approach to welfare reform Name: XXXXXXXX Professor: XXXXXX Institution: XXXXXX Course: XXXXXXXX Date: XXXXXXXXX Introduction The White Paper, Universal Credit: Welfare that Works, presents the main point to be reformed in the benefits system…
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