Dr Rita Griffiths and Dr Marsha Wood: Coping and hoping: monthly assessment and Universal Credit

This event marked the launch of the new Institute for Policy Research report: "Coping and hoping: Navigating the ups and downs of monthly assessment in universal credit". The report, written by Dr Rita Griffiths and Dr Marsha Wood, explores how the system of monthly assessment in Universal Credit – used for assessing entitlement, recovering debts and calculating payment – is affecting income security and financial well-being in working households. The research, funded by abrdn Financial Fairness Trust, tracked changes in earnings and household income, in real time, between 2022 and 2023 tracked changes in earnings and household income, in real time, between 2022 and 2023, among 61 Universal Credit claimants in 42 working households with one or two earners in paid work or self-employment. The specific research questions the study sought to answer were: - How stable or volatile are monthly household incomes and what are the key drivers? - To what extent does Universal Credit dampen or accentuate income insecurity and help with household budgeting? - Is the adjustment to the Universal Credit payment in response to changes in earnings timely and smooth? - Is household income sufficient to generate a buffer and cover reductions in the Universal Credit payment when earnings rise? - What budgeting strategies do participants use to manage fluctuating payments and variations in household income? - To what extent does monthly assessment incentivise employment, longer working hours and higher earnings? - What conclusions and policy implications can be drawn from the findings and what policy recommendations can be made? The event included a presentation from the report authors, Dr Rita Griffiths and Dr Marsha Wood, and audience questions. It took place on 16 April 2024.