Universal credit is doomed – one-size-fits-all suits no one | Penny Anderson | Comment is free | theguardian.com

English: Benefits Chain Diagram

English: Benefits Chain Diagram (Photo credit: Wikipedia)

This article by Penny Anderson, in the Guardian, is WELL WORTH A READ. Check it out!

Universal credit is doomed – one-size-fits-all suits no one | Penny Anderson | Comment is free | theguardian.com.

Personally, I too think that Universal credit is likely to fail but I fundamentally disagree with Penny Anderson’s proposal for for greater customization of benefits; here’s a summary of her viewpoint:

To work efficiently, benefits must, by necessity, be complicated

As an expert in strategic cost management, let me share some fundamental principles.

Firstly, customized complexity is inherently more costly as a basic product or service.

Secondly, standardized high volume products or services are much cheaper to produce and deliver.

It’s fundamentally a strategic political decision as to whether one is going for “high cost customization” or “low cost standardization“.

Based on my political beliefs, with a severely rationed budget for benefits, I think that the “standardized solution” is inherently better in getting greater value to the widest number of benefit recipients.

More fundamentally, I believe that there has been too much abuse of benefits and the idea of pandering to benefit claimants every wish and fantasy is a nonsense.

Any thoughts?

Enhanced by Zemanta

2 responses

  1. Pingback: Why Universal Credit was always Doomed – John Gelmini « Dr Alf's Blog

  2. Universal Credit is doomed because it ignores the mental processes of benefit recipients,their inability to budget on a monthly basis and because in many cases they are better off not working at all .
    This given the low pay that they would get in the sorts of jobs many of them would be realistically be able to do.
    Given that 1 million people are on zero hours contracts and the numbers are increasing Universal Credit as now constituted has disincentives to work built into it rather than making work pay and is not truly universal in that Housing Benefit does not automatically fit into it and in many cases will still go to Landlords as it does now.
    Some landlords with HMO,s(Houses in Multiple Occupation),have already circumvented Universal Credit by insisting that tenants who are benefit recipients have their rent paid by local authorities paid to a management services company owned and controlled by the landlord.
    Where local authorities disagree with this then tenants are subjected to eviction.
    Giving local authorities control over landlords and rents as Ed Miliband and the Guardian would like to do is going to discourage landlords,cause evictions and disrupt the flow of Universal Credit which is contingent upon the benefit recipient having an address.
    Work can only pay if there is enough of it and the reality is that for every 47 benefit recipients there is just 1 job.
    Factoring in the 4.5 million illegal immigrants and the fact that 85% of jobs go to people who are immigrants rather than the indigenous population,most benefit recipients barring a lottery win ,starting a business or consistent 3% plus economic growth ,are going to be with us until the day they die.
    A more proactive approach to rebuilding our infrastructure ,exporting and inward investment would create the money needed to drag UK PLC out of this situation and gradually render Universal Credit unnecessary.
    Of that we hear little from the Government,little from Ed Miliband and nothing from the Guardian whose reporters and writers seem to think that redistribution of wealth via high taxes rather than creating a bigger cake is the answer to everything.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: