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...

To continue reading this article...

Join COVER for free

  • Unlimited access to real-time news, key trend analysis and industry insights.
  • Stay on top of the latest developments around health and wellbeing, diversity and inclusion and the cost of living crisis.
  • Receive breaking news stories straight to your inbox in the daily newsletter.
  • Members only access to monthly programme 'The COVER Review'
  • Be the first to hear about our CPD accredited events and awards programmes.

Join now

 

Already a Cover member?

Login

More on Income Protection

Simplybiz to distribute Shepherds Friendly IP

Simplybiz to distribute Shepherds Friendly IP

Aiming to grow its intermediary footprint

Cameron Roberts
clock 09 June 2025 • 1 min read
Krysalis joins IPTF

Krysalis joins IPTF

11th new member in 2025

Cameron Roberts
clock 02 June 2025 • 1 min read
IPTF adds Empath_AI to membership

IPTF adds Empath_AI to membership

Detection of mental health vulnerabilities

Jaskeet Briah
clock 12 May 2025 • 2 min read