Universal Credit

Department for Work and Pensions written question – answered on 26th June 2018.

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Photo of Kate Hollern Kate Hollern Shadow Minister (Housing, Communities and Local Government)

To ask the Secretary of State for Work and Pensions, what estimate her Department has made of the saving to the public purse as a result of the roll-out of universal credit.

Photo of Alok Sharma Alok Sharma The Minister of State, Department for Work and Pensions

The forecasted exchequer savings (minus figure indicates a saving) from the introduction of Universal Credit are provided in the table below*







Net effect on Welfare Spending - SS18 (£b)






* The figures are taken from table 2.22 in the excel document, ‘March 2018 Economic and fiscal outlook – supplementary fiscal tables: expenditure’, which can be accessed at http://obr.uk/efo/economic-fiscal-outlook-march-2018/

This forecast is produced by the Office for Budget Responsibility who set out their methdology in the Welfare Trends Report published in January 2018. The full report and accompanying data is available here: http://obr.uk/wtr/welfare-trends-report-january-2018/

Universal Credit will deliver an overall reduction in welfare spending of £3.6bn per year, savings associated with reduced fraud and error of £1.3bn per year, and employment gains of £1.8bn per year. Once in steady state, we expect Universal Credit to generate wider economic benefits of £8bn per annum, as set out in the published Universal Credit Business Case.

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