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вЂњWith the reputation of universal credit under significant threat, now is the time for the government and the Department for Work and Pensions (DWP) to really understand how it is working on the ground in order to make necessary changes,вЂќ it says. The foundation also called for further changes to the design and generosity of universal credit to make the system easier for claimants to use and to ensure it meets its original aims of simplifying benefits, improving incentives to move into work and cutting poverty. Laura Gardiner, research director at Resolution, said some areas of the country would fare particularly badly under universal credit and understanding that вЂњshould be central to policy debates that are rightly focusing on what can be done to close economic gaps between parts of the UKвЂќ.

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That many of the UKвЂ™s poorest local areas will be net average losers under universal credit is вЂњsomething currently being ignored amid growing debates about how to level up economic outcomes across BritainвЂќ, says the foundation. Universal credit will pay out more than ВЈ60bn a year nationally by 2023. Other areas where families are on average likely to be worse off when they move on to universal credit include Liverpool, Birmingham, Glasgow, Burnley, Kingston-upon-Hull, Blaenau Gwent, Knowsley and Hartlepool.

Official data indicates that the deprived areas most closely matching this profile and where, on average, families will be worse off under universal credit, include places that unexpectedly voted for the government at the last election such as Blackpool, Middlesbrough, Redcar, Hyndburn and Wolverhampton.ДЄfter its victory, the government promised to regenerate fragile post-industrial economies in the Midlands, the north and north-east of England where it won a swath of previously staunch Labour-voting parliamentary seats known as the вЂњred wallвЂќ. The thinktank says the economies of those areas with high numbers of disabled, unemployed or single-parent claimants вЂ“ all groups likely to lose out under the new system вЂ“ will see falls in spending power when universal credit is fully rolled out.

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