A study by the Resolution Foundation has identified that working-age disabled individuals in the UK might be financially disadvantaged by the transition to universal credit, with potential annual losses of up to £2,800 for those unable to work due to their disability. Universal credit, which is being implemented to consolidate various benefits into a single payment and encourage employment, has been defended by the Department of Work and Pensions (DWP) as a system that simplifies the benefits process and provides essential support. However, concerns persist about its adequacy for certain groups. The think tank’s report suggests that while some families, such as a working single parent, might see financial benefits under the new system, the full implementation of universal credit by 2030 could result in significant entitlement reductions for others.

In a separate report, HM Revenue and Customs (HMRC) has called attention to the underutilization of child benefit entitlements among UK families. Recent adjustments to the child benefit system have increased the annual payment to £1,331 for the first child and £881 for additional children, but approximately 765,000 parents are currently not claiming these funds. This lack could mean missing out on substantial financial support, estimated at around £17,000. HMRC has streamlined the process, allowing for increased child benefits to be automatically updated for existing claims and made available directly through bank transfers. New applicants are encouraged to utilize online services or the HMRC app to ensure they receive their entitled benefits during a time where economic pressures are exacerbated by global events.