Research and analysis

Executive summary: Universal Credit Full Service Omnibus Survey

Published 7 October 2024

Introduction 

This report presents findings from two waves of a survey with a representative sample of new Universal Credit (UC) full service claimants.  The surveys examine how well new claimants understand the UC claim process and their rights and responsibilities with a view to meeting their information needs.  

There have been four waves of these surveys.  This report contains findings for waves 3 and 4. The wave 3 survey interviewed 836 new claimants during February and March 2019.  Wave 4 took place during 28 February and 15 March 2020 and interviewed 2,033 different UC claimants.  Wave 4 findings are, therefore, based on claimants’ experiences prior to the covid-19 pandemic lockdown which came into effect on 23 March 2020. 

Overall understanding of Universal Credit 

Overall understanding of UC was consistently high among new claimants at both waves 3 and 4.  At wave 4, three-in-four new claimants (76%) reported that they knew how to claim UC and four-in-five (81%) knew what would happen if they failed to comply with their Claimant Commitment.  

New claimants recalled being given key information by staff when they first made their claim.  Again, findings were consistently positive for both waves 3 and 4. Nearly nine-in-ten (87%) at wave 4 were made aware that they needed to have a bank or similar account and 71% recalled being told they needed to have an email address.  Seven-in-ten (70%) were aware that UC was paid monthly in arrears and four-in-five (79%) were informed that the first payment could take up to five weeks.  

Awareness of advance payments was also high with three-in-four new claimants (74%) reporting that they were told about it. Three-in-five claimants (58%) reported that they had applied for an advance whilst waiting for their first UC payment. Findings were similar at both waves 3 and 4.   

Attitudes towards the work incentive features of UC were more positive at wave 4:  47% of new claimants agreed that they would always be better-off working under UC (+6 percentage points compared to wave 3) though knowledge on how much people could earn and still claim UC remained low (38% vs. 37% at wave 3).  Attitudes and knowledge on these aspects were more positive among younger claimants particularly those aged 16-34. 

Work allowance and taper rate 

Claimants who have responsibility for a child or have limited capability for work are eligible for a work allowance. This is the amount claimants can earn before their UC payment is affected. There are two set levels of work allowance, depending on the circumstances of the household. Currently those whose claim includes Housing Benefit can earn £192 and those without can earn £397 before their UC claim is affected. Once claimants earn more than their work allowance, their payments will be reduced at a steady rate (the taper rate).  Currently, for every £1 earned over the work allowance, UC payments are reduced by 63p.   

New claimants’ understanding of the taper rate and eligibility for the work allowance remained low, albeit with a modest increase in overall knowledge of the taper rate between waves 2 and 4 (from 3% to 7%).  Just 2% of new claimants at wave 4 identified correctly the two groups eligible for the work allowance and 7% identified the correct taper rate.  Seven-in-ten claimants (69%) did not know whether they qualified for a work allowance - similar to wave 2 findings.  

Conditionality and sanctions 

Everyone who receives UC is placed in a conditionality group based on their circumstances and work capability. The group they are in determines what is expected of them during their claim. Claimants who are required to take steps to get work, or move closer to it, or to increase their hours/income if they are already working agree a Claimant Commitment with their Work Coach, setting out the steps they will take. Failure to action these responsibilities could result in a temporary reduction to their UC, though claimants may appeal against this decision. 

Half of claimants (52%) at wave 4 were fully knowledgeable of the factors that could lead to UC payments being stopped or reduced.  At least seven-in-ten were aware of the main factors that could result in sanctions such as failing to attend a compulsory meeting with a Jobcentre adviser, failing to fulfil the Claimant Commitment, and failing to take reasonable action to look for work.  The exception was “failing to apply for a job when asked to by the Jobcentre Adviser” – fewer new claimants (59%) were aware that this could lead to UC being reduced or stopped. Findings were similar for waves 3 and 4.   

The majority of new claimants (81%) believed they have a good understanding of the implications of failing to comply with their Claimant Commitment, but further questioning showed that many had poor understanding of the implications to their benefit payments.  This pattern was apparent at both waves 3 and 4.  At wave 4, just one in six claimants (16%) correctly identified that their benefits could be reduced on a temporary basis if they failed to comply with the requirements in their Claimant Commitment.  Claimants were better informed about their right to appeal a sanction on their claim – 54% knew this, which was similar to wave 3 findings.  

Male claimants were more knowledgeable about conditionality and sanctions than females and younger claimants more knowledgeable than older ones.  

Childcare 

Claimants who are eligible for UC may be able to claim back up to 85% of their ‘formal’ childcare costs, usually if they are doing some paid work or have a job offer. Currently the most parents can claim back each month is £646 for one child or £1,108 for two or more children. 

Parents’ awareness of available childcare support remained low though there has been an increase in the proportion of parents who knew they could claim childcare costs for all their children regardless of age, albeit from a low base (7% at wave 4 compared to 3% at wave 3).  There has been no corresponding increase in parents’ knowledge of how much of their total childcare costs they could claim (8% correctly identified that they could claim more than three-quarters of the costs at both waves 3 and 4).   

One-in-five parents were aware that Jobcentre advisors could provide support to cover the first childcare costs in advance of them moving in to work; findings were similar for waves 3 and 4. 

The majority of parents were able to identify at least one acceptable evidence of payments required to claim formal childcare costs, but awareness of how often they must report childcare payments to the Jobcentre remained low and unchanged between wave 3 and 4 (16% knew they must report monthly).   

The most common reasons given by parents for not claiming the childcare element of UC was because they were not sure they would be eligible (19%), that their childcare was covered by another government scheme (12%), that they weren’t aware of the UC offer, and because they were not eligible for it (6%).  

Housing 

Claimants who are eligible for UC can get help paying for their housing if they rent from a private landlord, housing association or local authority, or to cover interest payments on their mortgage and service charges.  The housing payment is included as part of the monthly UC payment and claimants are responsible for paying rent to their landlord.  Once they have started claiming the housing payment, claimants need to report any changes in circumstances to the Jobcentre.  

Claimants must apply directly to their local authority if they want to make a claim for Council Tax reduction.    

The majority of claimants (80%) who received help with housing costs through UC reported that they were made aware that they must pay rent to their landlord directly when they applied for UC. Claimants were less familiar with the requirement to apply to their local authority for Council Tax (55%).  Findings were similar at waves 3 and 4.  

Three-in-four new claimants who paid rent (73%) knew they needed to keep the Jobcentre informed about changes), and over half (55%) knew it was also their responsibility to tell the Jobcentre about their rent-free weeks. However, new claimants were much less clear about what would happen to their UC payments if they regularly missed their rent payments (28%).  Findings were similar at waves 3 and 4.  

Conclusions 

New claimants’ understanding of how to claim UC have remained consistently high, evidenced by the high levels of recall of Jobcentre staff providing key information at the start of the claim.   

Attitudes towards the work incentive features of UC improved between waves 3 and 4 though there is more that the Jobcentre can do to shift attitudes further such as ensuring claimants understand the work allowance and taper rate and how they affect them.  

The majority of new claimants were able to identify at least some of the reasons that would result in their UC being reduced or stopped.  However, they would benefit from more information on how a sanction would impact their UC payments and their right to appeal.  

More needs to be done to ensure that parents are better informed about the childcare element of UC.  Knowledge remained low across all parents including those using formal childcare. 

Strategies to improve awareness and understanding of UC should prioritise older claimants (aged 45 plus) and former Employment and Support Allowance (ESA) claimant. These groups remained less informed than others.