tailieunhanh - Universal Credit - Summary: Intervention and Options

You can begin by thinking about your personal needs and wants. “Needs” are items that you must have for basic survival, such as food, clothing, and shelter. “Wants” are things you desire but can live without, such as fashion items, restaurant meals, or entertainment. Make a list of each and estimate the costs; then compare. Are you spending as much for your wants as for your needs? Are you currently making payments on items that you bought to satisfy your wants? Remember, wants are neither good nor bad. However, you’ll want to personally balance your needs and wants so you can successfully establish. | Title Universal Credit Impact Assessment IA Lead department or agency Department for Work and Pensions Other departments or agencies Local Authorities Her Majesty s Revenue and Customs Date December 2012 Stage Final Source of intervention Domestic Type of measure Primary legislation Contact for enquiries Summary Intervention and Options RPC Opinion RPC Opinion Status Cost of Preferred or more likely Option Total Net Present Value Business Net Present Value Net cost to business per year EANCB on 2009 prices In scope of One-In Measure qualifies as One-Out No N A What is the problem under consideration Why is government intervention necessary Welfare dependency has become a significant problem in Britain with a huge social and economic cost. There are two fundamental problems with the current welfare system poor work incentives and complexity. As a result the current system hinders rather than helps millions of individuals on low incomes and facing welfare dependency. For people often reliant on benefits the incentives to move into work or to increase earnings once in work can be very low. In around million households a person would currently lose between 70 per cent and all of their earnings if they move into work of ten hours a week. The incentives to increase hours once in work are also very weak. Under the current system around 700 000 individuals in low paid work would lose more than 80 per cent of an increase in their earnings because of higher tax or withdrawn benefits. The current system of benefits provides targeted support to meet specific needs but the net effect is a complex array of benefits which interact in complicated ways creating perverse incentives and penalties confusion and administrative cost. This has the effect of preventing many in our society from seeing work as the best route out of poverty. It also increases the risk of error and the opportunities for fraud. What are the policy objectives and the intended effects The policy will .

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