Research and analysis

Universal Credit and earnings progression: evidence from a regression discontinuity design

This report looks at how working claimants on Universal Credit can be supported to increase their earnings.

• From: Department for Work and Pensions
• Published: 28 August 2024

Applies to England, Scotland and Wales

Documents

Universal Credit and earnings progression: evidence from a regression discontinuity design

PDF, 780 KB, 35 pages

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Details

Universal Credit aims to support benefit claimants to find work and to progress in work.

This study focuses on some of the lowest earning claimants on Universal Credit who are placed in the Intensive Work Search (IWS) regime. Claimants in the IWS regime are required to undertake activity to search for work, or more or better paid work.

Using data on claimants who entered Universal Credit between May 2017 and February 2019, the study examines whether the IWS regime helped claimants increase their earnings after entering Universal Credit.

To estimate the impact made by the IWS regime, the study compares 2 groups of claimants who entered Universal Credit with earnings just either side of an earnings threshold:

• those earning below the threshold were placed in the IWS regime
• those earning at or above the threshold were not required to engage with their jobcentre

This report adds to the department’s wider evidence base, which includes an earlier large-scale randomised controlled trial that examined the effectiveness of a number of similar regimes for Universal Credit claimants in low-income households.

Published 28 August 2024