Universal credit interaction with IP 'needs revisiting'

clock • 3 min read

The treatment of income protection in the new Universal Credit (UC) system will create an obstacle to take-up and needs revision, The New Policy Institute has warned.

Up to 10% of individual IP policyholders could find that the financial value of their policy is fully offset by a corresponding reduction in UC. The adverse treatment of IP also contrasts unfavourably with the rules governing the use that can be made of the lump sums paid out under critical illness and terminal illness (CI and TI), the New Policy Institute said.  The adverse treatment of income protection contrasts with group income protection (GIP).  GIP is treated under UC broadly as it was before. What appears to account for the different treatment of IIP and GIP is that UC trea...

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