Universal Credit Claimants Access £10bn in Supplementary Support Beyond Standard Payments
Individuals claiming Universal Credit from the Department for Work and Pensions are receiving more than £10 billion in additional, often overlooked benefits on top of the core £100 billion in Universal Credit payments, according to a comprehensive new study. This substantial sum represents a significant layer of supplementary support distributed through what researchers describe as a "vast shadow welfare system."
The Seven Key Additional Benefits for Claimants
The research identifies seven primary forms of extra assistance that eligible Universal Credit claimants can access. These benefits are designed to alleviate specific living costs and include:
- Free prescriptions for medication, removing a key healthcare expense.
- Discounted travel on public transport networks, aiding mobility.
- Free school meals for eligible children, supporting family nutrition.
- Help with energy bills, providing crucial support with heating and electricity costs.
- Assistance with water charges, easing utility burdens.
- Support with broadband costs, essential for modern connectivity.
- Help with holiday bills, offering respite during school breaks.
Think Tank Highlights "Opaque" and "Uneven" Distribution
The report, published by the think tank Onward, argues that these "bonus" benefit top-ups are handed out in methods that are both "opaque" and "uneven." The organisation states its investigation is the first to fully reveal the scale and nature of these "passported" benefits—additional entitlements triggered by eligibility for Universal Credit. Sir Simon Clarke, director of Onward, emphasised the fiscal and policy implications, stating: "£10bn is a huge cost to taxpayers, and this public money directly cuts across the incentives for people to move from welfare into work. If we are serious about both fairness and affordability, we need root and branch reform as a matter of urgency."
Political Calls for Comprehensive Welfare Reform
The findings have ignited a political debate about the effectiveness and structure of the UK's welfare system. Helen Whately, the Shadow Welfare and Pensions Secretary, criticised the current setup, arguing: "Our welfare system isn’t working. This hotchpotch of benefits outside Universal Credit undermines its core purpose to make sure work always pays." She added that welfare requires urgent reform, contending that the government is exacerbating the problem by adding extra handouts rather than creating a "fairer system which backs people who do the right thing, and serves as a safety net, not a benefits trap."
Government Response and Ongoing Review
In response to the report and the broader discussion, a Government spokesman acknowledged the role of passported benefits. "Passported benefits such as free school meals are an additional support some people receive because of their entitlement to Universal Credit," the spokesman said. They confirmed that the government is currently undertaking the first review of the Universal Credit system since its inception. The stated aims of this review are to ensure that "people are always better off in work" and to tackle poverty effectively. The spokesman concluded: "We are taking a significant step to fix the broken welfare system we inherited, by rebalancing Universal Credit sickness and unemployment rates."
The report concludes by noting that these additional payments are frequently excluded from analyses of working-age welfare spending, obscuring the full picture of why expenditure in this area has grown. This revelation places further pressure on policymakers to deliver a coherent and transparent welfare framework that balances support with the principle of making work pay.
