Impact of Universal Credit on Poverty Reduction Across Gender and Single Parents in the United Kingdom

Abstract

This study sought to investigate the multifaceted impact of the Universal Credit program in the United Kingdom, focusing on poverty rates, tax benefits, and the implications for vulnerable populations. Through quantitative analysis, the research offers insights into the program's effectiveness and underscores the nuances of its outcomes. The analysis of poverty rates reveals a significant reduction following the introduction of Universal Credit. A negative coefficient (-0.0125) signifies a consistent decrease in poverty rates, supported by a low p-value (0.0169) that indicates statistical significance. These findings affirm the program's positive influence on reducing poverty, providing a vital social safety net. In the realm of tax benefits, disparities emerge among family structures. Single parents with child dependents experience significantly higher tax benefits compared to other family types, supported by a low p-value in a one-tailed test. While this difference underscores the importance of tailored support, the study reveals a complex narrative. Despite tax disparities, Universal Credit positively affects poverty reduction among single parents with children, highlighting the program's multifaceted impact. Further analysis considers gender-based differences in tax benefits, revealing no statistically significant variation between male and female individuals. The p-value (0.37) suggests comparability in tax benefits. These findings contribute to understanding gender dynamics within the context of social policies. In conclusion, this study illuminates the pivotal role of Universal Credit in alleviating poverty rates in the United Kingdom. It emphasizes the necessity of targeted support for different family structures and the need to consider nuanced outcomes, particularly in tax benefits. While acknowledging disparities, the research underscores the program's overarching positive influence on poverty reduction among vulnerable populations. This multifaceted perspective informs evidence-based policy decisions and underscores the importance of continued research in assessing the evolving landscape of social welfare programs.