Drawing on the findings from their wider research study, this report by Dr Rita Griffiths and Dr Marsha Wood explores the interaction between Universal Credit (UC), earnings, ‘passported’ benefits and other means-tested help for working claimants.

The research found that while all participants had levels of earnings low enough to entitle them to UC, only in rare instance did UC receipt of itself automatically qualify them for help. Not only were application processes typically onerous and time-consuming, but many working claimants were ineligible for support due to the very low earnings thresholds which applied to most of the schemes. Others had variable earnings which meant they dipped in and out of eligibility. Those whose earnings rose above a certain level could find themselves financially worse off, undermining UC’s fundamental goal to ‘make work pay’. These ‘cliff edges’ discouraged some people from working longer hours and earning more.

An accompanying policy brief summarises the key findings and recommendations.

The research was funded by abrdn Financial Fairness Trust.