Most aspects of the new universal credit will succeed in driving the ‘desired user behaviours’, according to a research study published by the Department for Work and Pensions. These include seeking and increasing work, using the online claim system easily and correctly, and managing money and budgets.

The authors say only ‘relatively minor modifications’ are therefore needed to the design of the new credit. But their own research evidence shows that moving to monthly direct payments (from weekly cheque payments) is a significant area of potential risk and stress for claimants. Specific issues highlighted by claimants include:

• It is significantly more difficult to budget for the whole month compared with a weekly and fortnightly basis.
• There is a risk of overspending in the first half of the month and then having insufficient funds for living costs in the second half.
• There may not be enough money to deal with any unexpected necessary/emergency expenditure when the next available funds are up to a month away.
• There will be a strong temptation to dip into the initial lump sum for reasons other than those intended – potentially diverting funds away from essentials such as rent, council tax and utility bills.

In response the report suggests incorporating budgeting tools and devices into the universal credit ‘online interface’: but at the same time it acknowledges that those potentially at greatest risk may also be those who make least use of any budgeting tools.

Source: Monique Rotik and Luke Perry, Insight to Support Universal Credit User-centred Design, Research Report 799, Department for Work and Pensions
Links: Report | Summary