The impact of Universal Credit on employment outcomes

Policy in Practice has been commissioned by the Local Government Association (LGA) to investigate the employment effects of Universal Credit. Our report presents three alternative methodologies to assess employment effects using local authority data.

The most promising approaches compare employment outcomes three months after making a new claim or experiencing a change in circumstances under legacy benefits and Universal Credit.

Taken together, the three approaches rule out Universal Credit having a large negative impact on employment; there is more evidence to suggest that the employment impact of Universal Credit is positive, albeit small.