Resolutions for Universal Credit

by Erica Young from the Social Justice team at CAS.

This article was first published in The Herald on 17 January 2026.

We all face higher energy bills, additional food expenses and pressure to spend more throughout the coldest months. For people with household budgets reliant on Universal Credit (UC), meeting even basic needs can be overwhelming.

Paying for essentials and navigating a fragmented social security system, involving local authorities, Scottish and UK agencies, can become all consuming. While UC design flaws affect almost everyone who needs the payment, young people and women are disproportionately, and profoundly, affected.

Young people under the age of twenty-five receive a lower rate of UC, compromising their ability to cope financially, live independently and succeed. This was the experience of teenager Ross, who approached his local Citizens Advice Bureau around Christmas in acute distress. Ross had found a job and a home of his own. Unfortunately, his health deteriorated, forcing him to give up work. Ross waited five weeks for an initial payment of just £30 in UC, reflecting his age and the date his final wage was paid, leaving him destitute. The CAB supported Ross to apply for payments related to sickness and disability. Insufficient financial support leaves Ross at risk of being trapped in a vicious cycle of falling income and worsening health at a formative age.

Over one third of people receiving Universal Credit - around two and a half million people across the UK- are employed, yet many cannot afford to meet their everyday needs. This is partly because UC entitlement is calculated monthly, based on income earned during the previous month, creating financial instability for people whose earnings fluctuate, or who are paid weekly. Women, who are more likely to be juggling work with caring responsibilities, are disproportionately impacted.

The Citizens Advice network works tirelessly to support women like Carol, but UC’s inflexibility translates into recurring financial hardship and distress. Carol, like many of us, received her earnings earlier over the Christmas period; she therefore appeared to have received two sets of earnings within the month which were used to calculate how much UC she is entitled to. This meant that come January, Carol received neither a UC payment nor Council Tax support. She is already managing mounting debts, taking a severe toll on her mental health.

There is an alternative. An empowering circle of fair work, high quality public services and a strong social security system would ensure that everyone has access to an adequate income to live a dignified life. Realising this vision means carrying out urgent repairs to our social security safety net, insuring us against life’s storms.

At the end of 2025 we celebrated the removal of the pernicious two child limit, a significant step toward achieving the change that is needed. The new year offers fresh promise. The UK Government is conducting a Review of Universal Credit, an opportunity to realise bold resolutions and anchor UC in its purpose of providing an effective safety net and springboard. We can design out destitution, so that in future winters and indeed all year round no one will have to worry about the cost of keeping warm or turning on the lights, freeing people to rebuild and flourish.