Evidence library

The introduction of Universal Credit by the UK Government will dramatically change the welfare system for working-age adults. Following full migration, it is expected to affect around 700,000 households in Scotland. One of the key shifts is the move from individual benefit payments to household based payments for the majority of claimants. The Department for Work and Pensions (DWP) has indicated that it will allow for exceptions and provide additional support for some vulnerable individuals, but most people who claim Universal Credit will receive a single monthly payment for their household. This paper therefore examines the current literature around household behaviours and interactions with the benefits system to inform analysis around the potential impacts of Universal Credit on Scottish individuals, households and services. This is in order to inform policy development in Scotland in response to UK Government welfare reform. Main Messages: - Household behaviour is complex and how income is distributed in a household is dependent on a number of interacting psychological, social and economic factors. - Who receives income in a household affects how it is distributed. Research indicates that there is a ?gendered distribution? of income in low-income households. Distributing income to women means that it is more likely to be spent on children and family needs than if distributed to men. - There is a clear and recurring gender message as a consequence of allocating benefits to households rather than individuals. A household benefit payment may impact on gender equality, leading to a return of a ?male breadwinner model?. At worst, it may exacerbate economic abuse in households where domestic violence is present. - Allocating benefits to households also has likely impacts on children, with potentially less money being spent on children?s needs.