Estimating the early labour market impacts of Universal Credit

This document describes an evaluation of Universal Credit (UC), a new benefit system designed to reduce poverty and encourage employment. The evaluation method primarily involved Propensity Score Matching to compare UC claimants with individuals from the previous Jobseeker's Allowance (JSA) system, focusing on labor market outcomes. The findings suggest that UC claimants have higher employment rates, longer job tenure, and greater earnings than JSA claimants. Despite potential biases, sensitivity analyses confirmed the robustness of the results. The evaluation utilized data from various administrative systems and acknowledged the challenges of comparing different benefit systems and accounting for eligibility criteria. While initial findings indicate that UC may increase employment, further analysis is recommended to validate these results as the program grows. The document also discusses the DWP's efforts to ensure a smooth transition for those affected by welfare policy changes. **This summary was written by an AI model and therefore should not be considered a definitive summary of the report. If you are aware of inaccuracies, please email evaluation.registry@cabinetoffice.gov.uk.**

Description

• Lead department: Department for Work and Pensions
• Evaluation stage: A complete evaluation report
• Other departments: No other departments listed
• Evaluation types: Impact evaluation
• Impact methods: Quasi-experimental method
• Quasi-experimental methods: Matching
• Grant information: This intervention is not distributing funding via a grant
• Government Major Project information: This intervention is not a major project
• Policies: No policies provided

Event Dates

• Event Name: Publication of final results
• Event date: February 2015

Evaluation Costs

• Cost: Not provided

Evaluation sharing

• Link(s) to published report(s): Yes
• Links to evaluation plans: No link provided
• Findings: Not provided
• Permission to share confirmed: Yes