Research and analysis

Not Started and Unfinished Claims to Universal Credit (UC Hesitancy Research)

Updated 18 August 2025

Quantitative and Qualitative Research Report 

(October 2024)

DWP ad hoc research report no. 98 

A report of research carried out by Ipsos UK on behalf of the Department for Work and Pensions (DWP).

Crown copyright 2024. 

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First published October 2024. 

ISBN 978-1-78659-732-8 

Views expressed in this report are not necessarily those of DWP or any other government department.

Acknowledgements 

The research team wish to thank all the participants who gave their time to take part in this study and the DWP for their support throughout the project.

Authors 

This report was written by researchers at Ipsos UK Public Affairs: 

Stephen Finlay, Research Director 

Kimberley Rennick, Research Manager 

Jamie Roberts, Research Manager

Key Findings 

The work profile of Universal Credit (UC) claim drop-out and non-claimants was similar, with the majority in work or looking for work and the majority had worked fairly solidly since leaving education. Almost all legacy claimants were out of work, and most were not looking for paid work; their partners were in a similar situation. 

The majority of respondents across all groups regularly budgeted, however, a majority were also running out of money at least some of the time. Legacy claimants were most likely to routinely run out of money. 

More than half of all groups stated that they did not need any support managing their budget. Legacy and drop-out claimants felt they did not receive enough money to cover their needs. 

Awareness and understanding of UC, and the perception of it being a complex process, remained barriers amongst all groups. Understanding of eligibility was a particular issue for non-claimants; and issues with joint claims created complications for drop-out claimants. 

The prospect of less frequent payments, the wait to receive payments, and worries about being worse off were barriers to legacy claimants. Those who were not currently able to work also feared that UC would result in them being pushed into work they were not ready for. 

Across all 3 groups, respondents indicated a preference for communication through letters from DWP. This preference was particularly strong among legacy claimants.

Research aims and methodology  

Research Objectives 

The aim of this research was to better understand the UC non-claimant population. Specifically, to understand why they did not claim UC, the financial and non-financial impact not claiming UC had on them and to understand any issues and barriers that prevented them from claiming. Specific research objectives were to understand non-claimants’: 

• background including their household composition, internet access and employment situation 

• perception of UC and DWP, reasons for not claiming UC or for not completing the claim process 

• barriers to claiming UC and what support they would need to make a successful claim 

Methodology 

A mixed method approach was used, including a quantitative survey with non-claimants, segmentation analysis and qualitative in-depth interviews with 50 non-claimants. Five interviews were conducted with third party organisations involved in supporting non-claimants. 

Quantitative method 

The quantitative strand of the research comprised 4,243 survey interviews with UC non-claimants. Within this, the sample included survey interviews with: 

• 2,069 drop-out claimants who started, but did not complete the process of making a claim for UC 

• 1,951 legacy claimants who were currently claiming a legacy benefit 

• 223 non-claimants who were eligible for UC but not currently claiming 

The sample for the drop-out and legacy claimants was provided by DWP. This data was weighted to the DWP profile for the legacy and drop-out groups. The eligible non-claimant sample was sourced from the Ipsos Knowledge Panel UK (KPUK), a random probability online panel. Screening questions were asked at the beginning of the survey to find people that were eligible for UC but not claiming. The survey data was weighted to the national profile of the KPUK sample. 

The survey was conducted online and by telephone between 4 November and 19 December 2021. 

A segmentation analysis of the survey data was conducted to help inform the qualitative strand of the research. This was done using Latent Class Analysis to group claimants according to their attitudes and behaviours, which resulted in 6 segments: 

• Segment A: Working and happy 

• Segment B: Financial strugglers 

• Segment C: Not working but eager 

• Segment D: Childcare and care barriers 

• Segment E: Health and age barriers 

• Segment F: Complex barriers 

As Segment A respondents reported being in work, happy with their situation and not needing support, they were not included in the qualitative strand as there was likely to be little value in exploring barriers or communication needs with them.

Qualitative method 

The research began with a scoping phase comprising 5 in-depth interviews with third party organisations involved in supporting people who were claiming or entitled to UC. The 5 organisations provided a range of advice and support, including: 

• helping people who were homeless or at risk of homelessness 

• offering legal advice and legal services 

• offering an online benefit calculator 

• supporting families with disabled children 

These advice and support services were targeted at different groups: 

• single, young people, those who belong to an ethnic minority group 

• people who were homeless or in temporary accommodation 

• people living in institutions e.g. prison or hospitals  

• people with disabilities 

• people with complex needs 

These interviews were conducted on 13 and 14 October 2021 and were used to inform the design of the survey, including areas of exploration. 

The mainstage qualitative strand comprised 50 follow up interviews with survey participants who had agreed to be recontacted. The 50 interviews were conducted from 24 January to 22 February 2022 and included: 

• 19 legacy claimants 

• 17 drop-out claimants 

• 10 non-claimants  

• 4 UC claimants who had recently started their claim

Findings 

Third party interviews 

Third party organisations discussed their own impressions of UC, as well as their perceptions of how people they supported viewed the system. Overall, they felt that the people they supported lacked the knowledge needed to navigate the system, which was seen to be complex and inflexible. 

A lot of people understand the basics but I’m not sure they understand the complexities of UC. It is difficult to navigate especially if you don’t have access to a computer. 

(Homeless charity) 

They felt that the UC system was not right for everyone, even if they were eligible. Third parties felt that whether an individual made a claim depended on their individual or household circumstances. Lack of digital access or digital skills to make or manage a claim were highlighted as key barriers for some non-claimants. 

The main perception of UC is that it is very inflexible and there is a lack of understanding of the system…. A lot of the system is online and automated making it hard for people who are vulnerable and may not have the IT skills needed. 

(Charity supporting homeless people) 

They also emphasised the uncertainty people had around whether they would be better off on UC or legacy benefits, and what they viewed as a lack of transparency around UC payment amounts and possible deductions. 

Third party organisations reported that, in their experience, most people who were eligible to apply for UC did so because they had no other choice. They highlighted a range of barriers experienced by people when they apply for UC, which included lack of skills, knowledge and confidence, the length of time it took to apply and concerns about being financially worse off. 

Some find the process of making the claim difficult. Some have some concerns they will be worse off on UC, and worried about the wait and delay of payment when moving onto UC. Also, there is a lack of trust of the benefit system for some.

(Charity supporting families with disabled children) 

Most barriers reported by support organisations were related to the UC system, or individual’s perceptions of the system. The complexity of the process of applying for UC was seen as a key barrier, especially for people who spoke English as an additional language. More widely, the organisations said there was a lack of knowledge of UC and who could claim, a lack of trust in the system and a lack of confidence in navigating it, including dealing with UC staff.

Another key concern held by non-claimants, highlighted by third party organisations was how people would cope financially during the 5 week wait for the initial payment after claiming UC. They recalled claimants who had reported experiencing long waiting times to speak to someone on the helpline and wider communication issues contacting the department to get a UC claim started. 

Third parties viewed the main concern among the individuals they supported was that they would be worse off on UC, compared with legacy benefits they received. This led some individuals, organisations said, to put off claiming UC for as long as possible. 

A lot of barriers don’t necessarily stop people claiming because they have no other choice but can make it more difficult and make people more likely to stay on current legacy benefits. 

(Charity supporting homeless people) 

Experience and attitudes towards work 

Male and female survey respondents were fairly equally split across the drop-out, legacy and non-claimant groups. 

In the UC claim drop-out group, just over half of respondents were male (53%). While women in this group were more likely than men to be in work (66% compared to 57%), men were more likely than women in this group to have been working full time (69% compared to 47%). Women in work were more likely than men to have been in their current role more than a year (43% compared to 34%). 

In the legacy claimant group, just over half (51%) were women. In this group, men were more likely than women to have been in work (8% compared to 3%) and of those looking for work, men were more likely than women to want to work full time (67% compared to 32%). 

In the non-claimant group, half of the respondents were women (50%). Most non-claimants, both men and women, were in work (88% and 81% respectively), although men were more likely than women to be working full-time (75% compared to 39%).

Age and housing tenure 

Around half of drop-out (49%) and non-claimants (59%) were aged 26 to 45; legacy claimants were more likely than other groups to be aged 46 or over (58% compared to 22% of no-claimants and 34% of drop out claimants).  

Drop-out claimants aged 26 to 35 were most likely to have been out of work and legacy claimants aged 36 to 45 were most likely to be in work. Among drop-out claimants and legacy claimants, those aged 56+ were less likely to be in work. 

Drop-out and legacy claimants renting from Housing Association or Council were less likely to be in work or looking for work. 

Figure 1 Age and housing tenure

Figure 1 survey question: H2. How old are you? Survey question: H7 Which of these applies to your home?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

Qualifications 

Over half of drop-out claimants (53%) and non-claimants (63%) had at least 2 or more A-levels, a degree or above. While almost 3 in 10 legacy claimants had no qualifications (29%).  

Drop-out claimants with tertiary qualifications were more likely to be in work, female, aged 26 to 45, belong to an ethnic minority group, and had no disabilities. Legacy claimants with no qualifications were more likely to be aged 46+, male, out of work, had a physical disability and had no dependent children.

Figure 2 Highest level of qualification

Figure 2 survey question H3. What is your highest level of qualification?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

Work status and time spent in work 

The majority of drop-out (61%) and non-claimants (85%) worked for an employer, whereas most legacy claimants (59%) were out of work and were not looking for work. 

A third of legacy claimants were not working but looking for work (35%). Most claimants in this group were claiming Jobseeker’s Allowance (JSA). Of the legacy claimants who were not working and not looking for work (59%) most were in receipt of Income Support (IS) or Employment Support Allowance (ESA).

Figure 3 Respondent and partner work status

Figure 3 survey question: B1a. What is your current work status? Base: drop-out claimants (2069); legacy claimants (1951) and non-claimants (223). Survey question: B1b. What is your partners current work status?  

Base: All with partners: drop-out claimants (1216); legacy claimants (304) and non-claimants (144) 

The majority of drop-out (83%) and non-claimants (77%) had worked fairly continuously since leaving education. By contrast, almost 4 in 10 (37%) of legacy claimants had spent most of their time out of work. 

Figure 4: Time spent working since leaving education

Figure 4 survey question: B5. Which of the following best describes the time you have spent doing paid work since leaving education?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

Barriers to working or earning more 

The qualitative interviews identified a range of complex barriers which had led to long term unemployment. It was common for a mental or physical health condition to be cited as a reason what prevented respondents from working, as well as a lack of confidence to work, including fear of working after a period of long-term unemployment. Other barriers to work respondents discussed included lack of skills, caring responsibilities and difficulties travelling to work. 

I have not worked since 18 years old, I have a real fear of working I don’t know how to.

(Female, out-of-work, legacy claimant)

For most drop-out claimants (62%), paid work was seen as a realistic goal, while almost half of legacy claimants (44%) said paid work was not a realistic goal even with support. 

Figure 5: Perceptions of whether working was a realistic goal

Figure 5 survey question: B6. Regardless of whether you want to work or not, which of the following statements best describes your situation?  

Base: drop-out claimants (639); legacy claimants (1,847) and non-claimants (34) * base too small to report 

Respondents who said ‘even with the right support, paid work is not a realistic goal for me’ were most likely to be legacy claimants (44%). Many people in this group had a physical and mental health condition (61% compared to 25%) and were older, being aged 46 or above (50% compared to 33%).  

The qualitative strand found that the types of barriers participants had influenced whether they felt that paid employment was a realistic goal. Where participants described multiple barriers, particularly relating to health, they said that paid employment felt out of reach. For those with health barriers, support to manage health conditions may help participants to reach employment over time. Where childcare was a barrier, participants felt that work was realistic when their children were older and attending school. Where skills were a barrier, participants felt that training would be beneficial. More accessible and affordable transport was also identified as a measure that could make the prospect of work more realistic. 

For some, the prospect of work was seen as unrealistic regardless of support. This was typically due to mental and physical health barriers, and particularly where participants had multiple health barriers. Others were full-time carers, with no foreseeable change in those circumstances. 

I physically and mentally cannot work. I don’t think anything will help…I don’t see work in my future with all the health stuff, especially my mental health.

(Male, out-of-work, legacy claimant) 

Attitudes to work 

Regardless of their situation, participants saw a great deal of value in working, particularly if they were currently or had previously been employed. Participants who had previously worked missed the social aspects and sense of achievement they had gained from working. 

Participants took pride in being self-sufficient and able pay for what they needed. They valued the financial autonomy that work gave them and to be able to afford more than just the essentials. Work was also seen as a valuable opportunity for social interaction. 

Work enables me to be self-sufficient. It means pride. It also means that I can afford those little extras and pay my own bills, pay my way.

(Male, in-work, non-claimant)

Where participants did not view work as a realistic goal, this could be frustrating for participants as it affected their sense of identity and limited their opportunities. 

To be honest, I would really love to go back to work because it’s part of my identity. I have been working ever since I finished school.

(Female, out-of-work, drop-out claimant)

Working hours, pay frequency and length of time in job 

Most survey respondents in the drop-out and non-claimant groups, who worked, were in full-time employment (58% and 57% respectively). The vast majority were paid monthly (68% and 80% respectively). 

Figure 6: Working hours and pay frequency

Figure 6 survey question: B2. How many hours a week do you normally spend in work? 

Base: all currently in work: drop-out claimants (1,430); legacy claimants (104) and non-claimants (189).  

Survey question: B4. And how frequently does your employer usually pay you?  

Base: all employees: drop-out claimants (1,187); legacy claimants (84) and non-claimants (189) 

Six in 10 (61%) drop-out claimants in work had been in their job less than a year and half of working non-claimants (51%) had been in their job at least 5 years. 

Figure 7: Length of time in job

Figure 7 survey question: B3a. How long have you been doing this job? Base: All currently in work: drop-out claimants (1,430); legacy claimants (104) and non-claimants (189) 

Six in 10 drop-out claimants who were out of work (64%), and half of legacy claimants who were out of work (54%) wanted to work full-time. 

Figure 8: Preferences for full time or part time work

Figure 8 survey question: B3b. Do you want to work full- or part-time?  

Base: All looking for work: drop-out claimants (268); legacy claimants (661) and non-claimants (12) * base too small to report 

Attitudes to working or working more hours 

Although most legacy claimants (62%) would have felt happier working, or working more hours, 7 in 10 (69%) would have found it difficult to do so if they were offered the opportunity. By contrast, drop-out and non-claimants were less likely to say they would be happier working or working more hours (35% and 24% respectively). 

Figure 9 Willingness and opportunity to work or work more hours

Figure 9 survey question: B7. To what extent do you agree or disagree with these statements?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223). Wording of statements differed depending on if someone was employed or unemployed (employed wording shown in brackets). 

In all groups, more than 4 in 10 survey respondents felt that jobs on offer did not pay enough to make working, or working more hours, financially worthwhile (44% of drop-out claimants, 42% of legacy claimants, and 47% of non-claimants).  

A minority of respondents in all groups agreed that they felt under pressure from family and friends to get a job or increase hours or pay (20% of drop-out claimants, 14% of legacy claimants, and 13% of non-claimants). 

Figure 10 Perceptions of financial benefits of working, or working more and feeling under pressure to work

Figure 10 survey question: B7. To what extent do you agree or disagree with these statements?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223). Wording of statements differed depending on if someone was employed or unemployed (employed wording shown in brackets). 

Barriers to working or working more  

Survey respondents across groups identified a lack of full-time vacancies as a key barrier, with a third of drop-out claimants and non-claimants (32% for both) and a further two fifths of legacy claimants (42%) agreeing with this. Non-claimants (37%) were more likely than other groups to agree that they did not have the right skills to get a job, compared to 32% of legacy claimants, and 26% of drop out claimants.

Legacy claimants (34%) and drop-out claimants (28%) were more likely than non-claimants (20%) to agree that there was not enough advice or support to help them to find a job. 

Figure 11 Perceptions of jobs availability, skills and support available

Figure 11 survey question: B7. To what extent do you agree or disagree with these statements? Continued.  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223). Wording of statements differed depending on if someone was employed or unemployed (employed wording shown in brackets). 

Three in 10 legacy claimants (30%) had both a physical and mental health condition, and almost 4 in 10 (37%), had either a physical or mental health condition. Drop-out claimants with a health condition or disability were less likely to be in-work than those with no disability. 

Those with physical conditions were less likely to work full-time than those with no disabilities. There was no difference between those with a mental health condition and those with no disabilities. Those with both physical and mental health conditions were more likely to have spent the most time not working (18% compared to 4% with no disability). 

Figure 12 Long term disabilities or health conditions

Figure 12 survey question: H4. Do you consider yourself to have any long-term disabilities or health conditions.  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

Nearly one in 5 drop-out and non-claimants (18% and 17% respectively) had caring responsibilities and just over one third of legacy claimants (34%) had caring responsibilities. Legacy claimants with caring responsibilities were more likely to be out of work and not looking for work than those without (72% and 52% respectively).

Figure 13 Caring responsibilities

Figure 13 survey question: B8. Do you care for anyone who needs help with everyday life due to illness, disability, or old age?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

When discussing barriers to work, or increasing earnings, over half of legacy claimants (57%) said that their physical or mental health or learning difficulty made it more difficult for them to work or increase their earnings. Over one fifth of drop-out and non-claimants did not have any difficulties (22% and 22% respectively). 

I struggle with mental health so I know work will be harder for me – but if I could work in area I want to – then I think my mental health would get a lot better. 

(Male, out-of-work, legacy claimant)

Women claiming legacy benefits were more likely than men to have reported having childcare (31% compared to 19%) and caring responsibilities (33% compared to 25%) making it more difficult to get work or increase earnings. 

I tried really hard to get a job in social care but could not find one that suited my situation. They could not understand that I could only work certain hours because of my son. 

(Female, in-work, drop-out claimant) 

Figure 14 Barriers to work or earning more

Figure 14 survey question: B9. Which, if any, of the following make it more difficult for you to get work/increase your earnings?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

Help or support needed to work or increase earnings 

When considering what help or support might have helped them find work or increase earnings, drop-out claimants and non-claimants reported that they needed training (19% and 24% respectively) and access to higher education courses (16% and 22% respectively). 

Depending on the job I might get – getting training with that specific job, rather than training in general beforehand, would be helpful.

(Male, in-work, non-claimant)

Over a third of legacy claimants (35%) reported not needing any support. 

I don’t think anything will help, I don’t see work in my future with all the health stuff, especially my mental health. I also retire in 2 years; I want to be left alone. 

(Male, out-of-work, legacy claimant) 

Figure 15 Help or support needed to find work or increase earnings

Figure 15 survey question: B10. What help or support, if anything, would help you to find work/increase your earnings?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

Income and budgeting behaviours 

Budgeting behaviour and frequency  

Around 7 in 10 drop-out claimants, legacy claimants, and non-claimants (70%, 72% and 69% respectively), said that they regularly budgeted, and around half do so at least weekly (53%, 47% and 50% respectively). Women in the legacy and drop-out groups were more likely than men to budget although there was no difference between men and women in terms of how regularly they budgeted.

Figure 16 Budgeting behaviour

Figure 16 survey question: C1. Do you regularly work out how much money you are getting from work and/or benefits, and how much you are spending?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

Figure 17 Budgeting frequency

Figure 17 survey question: C2. How regularly do you do this?  

Base: all who budget. drop-out claimants (1,484); legacy claimants (1,404) and non-claimants (157) 

In the qualitative research, participants across all groups prided themselves in being able to budget well and had several different methods they used to do this. These approaches were generally described as planning, rather than budgeting and included shopping around for the best deals, aiming to pay all bills as soon as they received a payment, monitoring outgoings using online banking, planning spending on paper or in a spreadsheet and using savings accounts. 

I budget and check my account daily. I am mindful of spending and only buy what I need.

(Male, out-of-work, legacy claimant)

My wife does all the budgeting. She is very careful with money, and she knows what is going in and out. She does some kind of double entry bookkeeping.

(Male, in-work, non-claimant) 

Although men were less likely to say they budgeted, when probed further many did budget but more informally than women. For example, by monitoring outgoings mentally rather than using spreadsheets to ensure they did not overspend. 

Generally, I control my budget in a vague way, but I am quite responsible as a person, I never overspend and as a couple we are wise when it comes to our spending. 

(Male, out-of-work, drop-out claimant) 

Experiences of running out of money 

In the survey, over 4 in 10 drop-out (41%) and legacy claimants (46%) said that they run out of money at least most of the time. 

Figure 18 frequency of running out of money

Figure 18 survey question: C3: And how often, would you say, you run out of money before you receive your next payment and/or salary and/or income?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

Claimants who reported that they run out of money ‘always’ were likely to have specific characteristics. Drop-out claimants in this position were more likely to have a physical or mental health condition (23% compared to 16% of other drop-out claimants) or caring responsibilities (20% compared to 16%).  

Similarly, legacy claimants who run out of money between payments were more likely to have a physical or mental health condition (23% compared to 19% of other legacy claimants) or dependent children aged 5 or under (26% compared to 19%). Non-claimants were more likely to have no dependent children (17% compared to 8% of non-claimants who did not run out of money). 

The qualitative interviews reflected the survey findings, with participants describing running out of money for essentials such as bills or food. Legacy claimants in particular, reported struggling and were most likely to run out of money routinely. These participants said they often prioritised buying food before they run out of money and that they had to juggle paying different bills each time they received a payment. This group generally felt that the money they received did not cover the cost of living. 

It’s just not sufficient to live on. I have to prioritise my food, gas and electricity then there is nothing left. I rob Peter to pay Paul. I take out loans to pay certain bills.

(Female, out-of-work, legacy claimant) 

Participants in the drop-out group said they sometimes struggled to pay bills, and some had payment plans in place with providers. These participants felt they simply did not have enough money and were worried about the cost of living increasing further. Christmas was a challenging time for this group with some saying they would run out of money due to additional seasonal costs. 

Non-claimants were less likely to regularly run out of money for essentials, but they said they still needed to budget carefully. Some struggled to save for more expensive periods, for instance Christmas, and would sometimes run out of money around this time. 

It’s only in the last few years that we feel we are not struggling at the end of the month. We are managing and reducing our debts, we owed 30k now only 6k. 

(Male, in-work, non-claimant)

When asked about rent or mortgage arrears specifically, the vast majority of survey respondents said they had not been in arrears in the past 6 months (85% for drop-out claimants, 87% for legacy claimants and 92% for non-claimants). Drop-out claimants most likely to have been in arrears were aged 36 to 55 (15%), belonged to an ethnic minority group (17%) or rented from a Housing Association (19%).  

Among legacy claimants, the groups most likely to report rent or mortgage arrears were those: 

• aged 46 to 55 (15%),  

• in an ethnic minority group (17%) 

• renting from Housing Associations (15%) or  

• with dependent children aged 5 or under (20%)  

Finally, for non-claimants, those renting from Housing Associations were most likely to have been in arrears (19%). 

Figure 19 been in arrears in the last 6 months

Figure 19 survey question: C4. C5. Have you ever been in arrears with your rent or mortgage payment in the last 6 months?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

In the survey, drop-out claimants, legacy claimants, and non-claimants all said they were most likely to borrow money from a friend or relative (36%, 45% and 27% respectively), or to use their overdraft (34%, 18% and 29% respectively), when they ran out of money. 

Figure 20 Borrowing behaviours

Figure 20 survey question: C4. Have you used any of these ways to borrow money when you run out of it?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

In the qualitative interviews, participants described using a range of methods to cope when they ran out of money, including borrowing, increasing income, and reducing spending. 

Borrowing included informal and formal sources. Legacy and drop-out claimants were both likely to turn to friends and family first. Legacy claimants also sometimes asked DWP for support and drop-out claimants sometimes relied on their partner’s income until they received another payment of their own. Non-claimants generally used formal sources of credit including loans and credit cards. 

Other participants focussed on increasing their income when they ran out of money. Participants in the drop-out group said they tried to increase their income by working extra shifts when needed. Non-claimants reported selling some possessions to bring in extra money. 

I have recently started using my overdraft, as cost of living has increased. However, I always pay my overdraft back by working overtime at work.

(Male, in-work, drop-out claimant) 

Recently we have sold possessions to get money, things that we don’t need or use. In the past we have had bank loans and credit cards. 

(Female, out-of-work, non-claimant) 

Participants across groups said they budgeted to avoid running out of money, including cutting back on essentials. In some cases, participants in the non-claimant group had savings to fall back on when needed. 

Banking behaviours 

At least 9 in 10 drop-out and legacy claimants (90% and 94% respectively) had a current account with a bank or building society, as did nearly 8 in 10 non-claimants (78%).  

Figure 21 Access to a bank account

Figure 21 survey question: C6. Do you and/or your spouse have a current account or a basic account with a bank or building society or at the Post Office?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

For drop-out claimants, a lack of access to a bank account was more common among those with dependent children aged 5 and under (14%) or those in an ethnic minority group (10%).  

Legacy claimants without qualifications were more likely than others in this group not to have a bank account (7% compared to 5%).  

Among non-claimants, women were more likely to have a bank account than men (86% compared to 69%). Those with a degree-level qualification were more likely than all non-claimants to have a bank account (88% compared to 78%). 

Budgeting support needs 

The majority of respondents across all groups said they did not need support managing their budget (61% for drop-out claimants, 72% for legacy claimants and 54% for non-claimants). Advice on how to increase their income was most sought after (19% for drop-out claimants, 11% for legacy claimants and 29% for non-claimants). 

Drop-out claimants who said they did not need any support to manage their budget were more likely to be aged 46+, of a white ethnic background or own their home with a mortgage or own outright. Legacy claimants who said they did not need support with were more likely to be aged 56+, of a white ethnic background, have level 2 or lower-level qualifications or have no dependent children. 

Figure 22 budgeting support needs

Figure 22 survey question: C7. What types of help or support, if any, would be most useful in helping you manage your budget? Anything else?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

In the qualitative research, participants largely attributed any struggles with budgeting to external factors which they viewed as outside their control. They therefore felt they did not need budgeting support. Participants said the main barriers they faced were not having enough money to cover essential costs and struggling to cover unexpected increased costs, such as those associated with children. 

Not sure any support would help. I just feel there just is not enough money to pay all the bills, so I have to pick and choose. 

(Female, out-of-work, legacy claimant) 

I can’t budget as my children’s needs are always changing every week…like I buy food, and they won’t eat it. 

(Male, out-of-work, legacy claimant) 

Even claimants who said they were comfortable with their current budgeting said they would be concerned about being able to budget over a full month. 

While participants said they did not need general budgeting support, some said they would welcome support with planning for specific life events, for example having a child or buying a house. Some also said they would benefit from support with completing forms for benefit applications. 

Concerns about income and budgeting 

Participants in the qualitative interviews who expressed concerns about money were particularly worried about unexpected costs or increases in the cost of living. They felt they were just managing on their current budget, but there was little room for unexpected costs. 

For those who said they did not have enough income to meet their day-to-day needs, money was a regular worry. This was a particular challenge for those who were not in work and those with dependents. Worries about money exacerbated existing mental health conditions, which claimants felt made it difficult for them to consider working or working more. 

I worry about money every day. Especially with the bills going up. Gas and electric…I sometimes worry about being able to pay the bill and rent.

(Female, out-of-work, legacy claimant)

Where participants felt they were just about managing, they still worried about dealing with unexpected costs, expensive periods including Christmas, increases in the cost of living, and changes to their benefits. 

It’s a massive change going from having money every week to every month, it stresses me out.

(Female, out-of-work, legacy claimant) 

Participants who felt that they managed on their current budget tended to be in work, older and have no dependents. These groups were less likely to worry about money on a regular basis. 

I used to worry about money a lot but less so now as I feel on top of everything, my wages have increased, so I can budget better.

(Male, in-work, non-claimant)

Awareness of UC 

The majority of drop-out claimants (67%) and non-claimants (59%) reported that they had a good or some understanding of UC. Legacy claimants were less likely to know much about UC (54% compared to 39% of non-claimants, and 32% of drop-out claimants). 

Among legacy claimants, those aged under 25 (62%) or 36 to 45 (51%), those who had a degree (55%), did not have a disability (48%), had dependent children (52%) or had caring responsibilities (47%) were more likely to have a good, or some understanding, than the claimant group overall (43%). 

Figure 23 Awareness of UC

Figure 23 survey question: D1. How much do you know about Universal Credit? Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

Among legacy claimants, the majority (70%) believed that UC will eventually replace the benefit they were currently receiving, with over a quarter (28%) saying this was ‘definitely true’. 

Figure 24 Legacy claimants’ awareness that UC will replace their benefit

Figure 24 survey question: D2. To the best of your knowledge, is this statement true or false? Universal Credit will eventually replace the benefit I am currently receiving  

Base: legacy claimants who have heard of Universal Credit (795) 

While participants in the qualitative interviews said they had heard of UC, their understanding of the benefit and how it worked was low across all 3 claimant groups. Even those with some experience of UC lacked clarity, particularly around entitlements and calculations. 

Across groups, participants typically understood UC to be an amalgamation of other benefits. Their knowledge of UC typically came from friends and family, or things they had picked up in the media. 

From what I can gather…UC is a generic name for all the benefits…they are paying it in one rather than labelling it as lots of different benefits. 

(Female, in-work, drop-out claimant) 

Interactions with DWP were also a source of knowledge and awareness participants mentioned, for example being encouraged to claim UC while claiming a legacy benefit. Participants in the legacy group knew that UC was paid less frequently than their existing benefits and that there could be a wait while a claim was processed. However, they did not know whether they would be better or worse off on UC, or how their claim amount would be calculated. 

Participants in the drop-out and non-claimant groups generally lacked clarity about UC eligibility criteria. Specifically, they were unsure about how their work status or their partner’s financial status may affect their eligibility for UC. 

Legacy claimants’ perceptions and attitudes to claiming 

More than half of legacy claimants (54%) did not think they would be financially better off on UC. Over half (53%) also reported that they would rather stay on their current benefit even if they were to get more on UC.  

Legacy claimants receiving IS or ESA were more likely to disagree they would be better off if they moved to UC (64% and 62% compared to 54%). Those aged 26 to 35 and those renting from a Housing Association were more likely to agree they would rather to stay on their current benefits even if they would get more on UC (63% for drop-out claimants, compared to 56% for legacy claimants and 53% for non-claimants). 

Figure 25 Legacy claimants’ perceptions and attitudes to claiming UC

Figure 25 survey question: D3. To what extent do you agree or disagree with the following statements?  

Base: legacy claimants who have heard of Universal Credit (795) 

UC information preferences  

Over 4 in 10 drop-out and non-claimants (42% and 46%) and over half of legacy claimants (55%) were open to learning about UC. 

Figure 26 Openness to learn about UC

Figure 26 survey question: D3a. To what extent do you agree or disagree with the following statements?: I am open to learning about Universal Credit.  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

When thinking about sources of information about UC, the vast majority of drop-out and non-claimants (78% and 85% respectively) said they would use the GOV.UK website. Legacy claimants were equally likely to say they would use GOV.UK and Jobcentre Plus to find out more about UC (40% and 36% respectively). 

Figure 27 UC information sources

Figure 27 survey question: D4. If you wanted to find out more about Universal Credit, where would you go?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

Those who said they would use the GOV.UK site to find about UC were more likely to be drop-out claimants and legacy claimants aged 26 to 45, female, with degree level qualifications and have no disability. While those who said they didn’t know where they would find about UC were more likely to be legacy claimants aged 46+ and those with no qualifications. 

Reasons for not claiming UC 

Deciding not to claim UC 

In the survey, around 8 in 10 legacy and non-claimants (86% and 79% respectively), had not considered applying for UC. Legacy claimants aged 56 or over (90%) and with no qualifications (89%) or receiving ESA (94%) were particularly likely not to have considered applying for UC. 

Figure 28 Deciding not to claim UC

Figure 28 survey question: E1. Have you ever considered claiming for Universal Credit but decided not to proceed with it?  

Base: all who have heard of Universal Credit. legacy claimants (1,885) and non-claimants (215) 

Among legacy claimants and non-claimants who had considered claiming UC, 6 in 10 (59% and 62% respectively), said they tried to find information to help them decide whether to apply. 

Figure 29 Seeking information when deciding whether to apply

Figure 29 survey question: E2. Did you make any enquiries or try to find information about Universal Credit to help you decide?  

Base: all considered claiming for UC. Legacy claimants (243) and non-claimants (48) – note small base size for non-claimants. 

Reasons for not claiming UC 

Legacy and non-claimants had a range of reasons for not claiming UC. For non-claimants, the biggest single barrier was a belief they would not be eligible (52%), and the belief they had enough money to see them through (23%). For legacy claimants the biggest barrier was the belief that they would be worse off or receive less money (18%). They were also concerned about the period without receiving benefits (17%). 

Figure 30 Reasons for not claiming UC

Figure 30 survey question: E3. What were your reasons for not claiming?  

Base: all who considered claiming for UC - legacy (243), and non-claimants (48) – note small base size for non-claimants. 

Legacy claimants’ reasons for not claiming  

The qualitative research highlighted that legacy claimants had concerns about UC which made them reluctant to switch. Their main concerns were receiving less frequent payments, the wait for payments and a lack of understanding and mistrust around how payments would be calculated. 

It was common for participants in the legacy claimant group to report they were put off by the 5 week wait as they felt they would struggle to afford essentials during this time. Some expressed concerns about managing financially during the benefit switch, which outweighed any potential benefits from the move, including receiving more money overall. 

They were also put off by the prospect of monthly payments. Despite tending to have confidence in their budgeting abilities, they worried about running out of money over this longer period. 

I would rather stick with my current benefit even if I would be better off on Universal Credit.

(Male, out-of-work, legacy claimant) 

In general, legacy claimant participants lacked knowledge about UC or held negative perceptions of the system and how it would affect them. There was a general mistrust of the benefits system which left them reluctant to switch. It was common for participants, especially those with health conditions, to believe that moving to UC would mean they were pushed into work when they were not ready. 

They have a broad-brush approach and will make you look for work, even if you can’t.

(Male, out-of-work, legacy claimant) 

Legacy claimants also expressed concerns that claiming UC would mean they would receive less money compared to their current benefits. These concerns were often based on information gained via word of mouth or discussions on social media. 

I am a member of an online forum for COPD….there is a lot of talk on there about UC…a lot are against it… they say you get less money and the system is failing. 

(Female, out-of-work, legacy claimant)

Case study: Legacy Nonstarter 

The participant had been on disability benefits since the age of 16. He worked for a few years, but since being diagnosed with schizophrenia has been unable to work and was claiming Personal Independence Payment. While he wanted to work in the future, he explained that his health was a significant barrier. He worried that if he got a job, this may lead to a loss of housing assistance and his benefits. 

The participant understood UC aimed to merge all the benefits and deliver them monthly. He did not want to change to monthly payments as he felt that he would be unable to budget effectively and manage his expenses over the course of a month. He felt he may get carried away and forget about bills.  

Having never considered switching to UC, he was unaware of further details, including any non-financial support that may be offered. He would like clear information that shows the breakdown of payments, to help him to allocate between bills, rent, food and other living costs. 

The payment a month shouldn’t be done – as people will end up spending it irresponsibly. 

(Male, out-of-work, legacy claimant) 

Non-claimants’ reasons for not claiming 

It was common for participants in the non-claimant group not to have considered applying for UC because they did not think they would be eligible. This group expressed a general lack of knowledge about UC, particularly around eligibility. The perceived complexity of the process also put them off from applying. For example, some of those in in work were worried that they may have to pay money back if they increased their working hours. 

I felt anxious – I didn’t like the thought of receiving money and then having to pay it back if I suddenly did more hours – I don’t want to risk being indebted. 

(Female, in-work, non-claimant) 

Other non-claimants were put off claiming due to negative perceptions of UC and DWP in general. These perceptions were informed either by their own previous experiences of claiming UC or other benefits, or by anecdotal evidence from friends or family. 

For me personally – I hated being involved with DWP over UC – I found it demoralising and impersonalised – and I couldn’t wait to get off it. Although they have improved since back in the day – a bit – but there is still a stigma attached to it and they are always wary of people who claim and always trying to catch you out …. so, I would say don’t bother with it unless you are really, really desperate. 

(Male, out-of-work, non-claimant)

Case study: Non-claimant  

The participant worked night shifts at a supermarket while living alone. She described her work as high pressure, unmotivating and “prison like” due to restrictions on talking. She was looking for a new role and would like to work in an administrative or office role. She felt optimistic but nervous about this change. 

The participant’s knowledge of UC came from negative news media coverage, largely focused on benefits being taking away or people not receiving enough to cover financial outgoings. She described UC as “a benefit for people who are out of work, the Jobcentre gives appointments to people and help them find jobs”.  

She also believed that UC helped people who do not want to work, and that there was not enough support for people on low incomes. She was unaware that those on low income may be eligible for UC.  

I think they (UC) should offer more help to taxpayers, but they don’t seem to bother with them. There should be more help to people on low income. 

(Female, in-work, non-claimant) 

Awareness of eligibility was a barrier for her applying for UC. She also felt that her ADHD and dyspraxia were barriers for both work and applying for UC. She would like practical support with applying, for instance someone to sit with her at Jobcentre Plus and help her to complete an application. 

Experiences of those now claiming UC 

Those who had switched to UC felt that it was aimed primarily at those seeking work or who were already in work. Some UC claimants said they were told claiming would help them to find work, but experiences of this were mixed, with some feeling it had not helped them.  

Overall is okay, I think they’re doing good. My [Work] coach is alright, helps me. Extends my view of things. 

(Female, out-of-work, UC claimant - previously drop-out claimant) 

Not very great for me, it doesn’t really help me, I feel like I get turned away [from jobs] every time, I don’t like being on it.

(Female, out-of-work, UC claimant - previously legacy claimant)  

Working claimants said they had been advised that UC would help them to top up their work income. Some former legacy claimants felt that they had been pushed into claiming when they would have preferred to stay on a legacy benefit.  

Claimants said that their understanding of entitlements and breakdown of UC payments remained unclear even when they were in the UC system. 

Case study: Previous legacy claimant now claiming UC  

The participant lived alone and had been unable to work for over 3 years, due to poor health. He did voluntary work and was completing further volunteer training while unemployed. The prospect of returning to work did not feel realistic at the time of the interview, although he hoped to work in the future. 

Prior to switching to UC, the participant knew little about it, other than it was a way to combine multiple benefits. He would have preferred to stay on legacy benefits.  

I kind of felt forced to switch…it was my choice, but I kept hearing about it… been told to do it. 

(Male, out-of-work, UC claimant - previously legacy claimant) 

He was concerned that UC did not distinguish between those who are out of work due to health and those who are job seeking. He was therefore worried that he may be pushed into work he was not ready for. He said the monthly payments may be a greater challenge to budget for, compared to the fortnightly payments he was used to. When looking into UC, he was unable to ascertain how much money he would get, or how this was calculated, so did not know if he would be better or worse off. 

The participant felt that there was not enough information, and that advisors were unable to answer his questions. He wanted information about how UC would be paid to his landlord, and what he could do if he ran out of money. He suggested that staff needed to be more knowledgeable, so they could answer questions and address concerns at the point of application. 

Case study: Previous drop-out claimant now claiming UC 

The participant was unemployed due to disability and illness, having previously worked as a nurse for 8 years. She thought paid work could be a possibility in the future with the right support. She lived with her partner, who was employed as a delivery driver. When she answered the survey, she had a good understanding of UC, but the process of applying made her realise that she did not know as much as she first thought and since felt UC was complicated.  

I thought, wrongly, that Universal Credit was a one stop shop for all benefit claims. Turns out that’s not the case. I get my benefits from 3 different locations, 3 different payment dates. It all gets very complicated. 

(Female, out-of-work, UC claimant - previously drop-out claimant) 

She originally dropped out of applying for UC due to the frustration of uploading copies of documents such as a tenancy agreement, which were not accepted due to formatting issues. Despite not being able to speak to anyone from DWP’s helpline, due to being kept on hold, she eventually worked out how to convert the files and successfully applied.  

The participant found it difficult to get information and reported that she was consistently sent from department to department. She said it took 7 months to process her ESA claim and the DWP lost her medical paperwork twice. She stressed that there was a need to improve communication, and suggested acknowledgement should be given for receipt of paperwork. 

Non-claimants’ income sources  

More than half of non-claimants (56%) who considered claiming for UC used income from work instead of claiming UC. 

Figure 31 Income sources for non-claimants

Figure 31 survey question: E4. What income sources did you use to cover your expenses instead of claiming Universal Credit?  

Base: non-claimants who considered claiming for UC (48) – note small base size for non-claimants 

Understanding the reasons for and impact of UC drop-out 

Participants in the UC claim drop-out group had 3 broad reasons for not completing their claim: the complexity of the process, eligibility concerns and difficulties communicating with DWP during the claim process. Difficulties relating to process and communications were further exacerbated for participants in joint claims due to the additional complexity of these claims. 

Participants who reported dropping out of their claim due to the process generally said that it was because they found it too long or complex to complete. Some of these participants also said they found the interviews intrusive, especially where a partner was required to provide details. 

It was dreadful…It seemed designed to stop people claiming Universal Credit…it needed so much information…You had to make 4 different accounts just to verify yourself. 

(Male, in-work, drop-out claimant) 

Some participants in the drop-out group said they did not complete their claim as they were ineligible for UC. This was either because their circumstances changed during the claim process, for example, getting a new job, or because they found out during the process they were not eligible, for example, due to their partner’s income. 

A range of communication issues were reported by participants in the drop-out group. These included struggling with an online application and not being able to speak to an adviser about it or speaking to an adviser who was unable to answer their questions. 

Participants with a partner in work reported facing additional challenges during the claim process as they relied on their partner to provide the information needed to make a joint UC claim. This could be challenging due to having to arrange calls or meetings with Jobcentre Plus around their partner’s work schedule.  

For me the interview was over the phone but for my partner it was in person at one of these Jobcentres which is 45-minute walk from here. My partner was not able to go to the appointment, they selected another date which he couldn’t make due to his job.  

(Male, out-of-work, drop-out claimant)

Then they were ringing him when he was at work so couldn’t answer phone, so then they were emailing to say you’ve missed the call…It was like it was my fault they couldn’t speak to him.  

(Female, out-of-work, drop-out claimant) 

Case study: drop-out due to being ineligible for UC  

The participant lived with her partner and child, she was made redundant last year when she was in the late stages of pregnancy and at the time of the interview looked after her child and house full time. Before being made redundant she worked as a retail manager for 10 years, until the company became insolvent leading her to be financially reliant on her partner.  

The participant was told to apply for UC by the insolvency administrators when she was made redundant. Prior to this she had no experience with DWP or benefits, so her understanding was limited. She did not understand why her partner’s earnings were relevant to her claim, and did not think it was fair or appropriate for him to be involved. She was rejected for UC, based on her partner’s earnings, and as a result felt unfairly treated by the system. 

I was a bit annoyed and confused when they called my partner up and talked about the claim and how much he earnt, when it was me who made the claim, they should be speaking to me. 

(Female, out-of-work, drop-out claimant)

She felt the online application was straightforward, however, was not aware that the claim would be joint and did not feel that this was fair. The couple would have liked to have had this information shared more clearly before claiming. 

Case study: drop-out due to process and communication related issues  

The participant lived with her husband, and both were in full time employment. She had been made redundant, during which time she started a UC claim. Though she had returned to work by the time of the interview, her salary was significantly lower than her previous role, and as a result, household finances were quite stretched. 

Having never claimed benefits before, the participant did not know very much about UC, and did not understand the difference between UC and JSA. She was confused as to why the claim was joint as it was her and not her husband who needed the support. She felt that this was intrusive and could cause problems in relationships because some people may not want their partner involved. Furthermore, the joint nature of the claim made things complicated as it was difficult to arrange appointments. 

She found the application system frustrating as she had difficulty uploading the required evidence. She was unhappy that advisors phoned her husband when he was working and therefore couldn’t answer the phone. She was unable to get an appointment to speak to somebody on the phone to explain the situation or to arrange a suitable time to call her husband. 

She found another job so no longer needed UC but would have dropped out regardless due to the challenges she encountered applying. 

I cancelled within a month [of application]- I got another job but would have cancelled anyway – they made a mockery of me, just thought forget it. 

(Female, in-work, drop-out claimant)

Understanding and information seeking before making a claim  

Half of drop-out claimants (50%) delayed applying for UC although 7 in 10 (69%) checked their eligibility before applying. 

Figure 32 delays in claiming UC

Figure 32 survey question: F1. Did you make your claim straightaway, or did you delay applying?  

Base: drop-out claimants (2,069) 

Figure 33 checking eligibility before making a claim

Figure 33 survey question F2. Did you check to see if you were eligible to claim Universal Credit before you applied for it?  

Base: drop-out claimants (2,069) 

Drop-out claimants who were more likely to check their eligibility for UC before applying were under 45 years old (73% compared to 62% aged 46 or over), female (75% compared to 65% male) or had degree level qualification (77% compared to 50% with no qualifications). 

The vast majority (78%) of drop-out claimants used online sources like GOV.UK to find out about UC before making a claim, 12% use other organisation’s websites, 10% use the Understanding Universal Credit website, and 9% look to Friends and Family. 

Figure 34 UC eligibility information sources

Figure 34 survey question F3. Which sources did you use to find out if you were eligible to claim Universal Credit?  

Base: drop-out claimants who checked eligibility for UC (1,404) 

In the qualitative interviews, drop-out group participants spoke about using online eligibility calculators or speaking directly to advisors to understand their eligibility for UC. However, even after looking for guidance there were individuals without a clear understanding of their eligibility. 

Well, I did the eligibility check because I suppose at the time I was paying a mortgage, and a service charge rent which confused them. They weren’t kind of familiar with that… I was also had a pension coming in. And so, lots of them forgot to ask questions about some of these things. So, as I said, they came up with 3 different versions. 

(Female, out-of-work, drop-out claimant) 

Support needs while making a claim  

Over half (55%) of participants did not need support when they tried to make a claim for UC. Almost 4 in 10 drop-out claimants (39%) did need help when they tried to make a claim for UC. Participants required help to work out whether they were eligible to claim (21%), to complete the application (21%), with providing ID (8%) or finding a computer or getting access to the internet (5%). 

Figure 35 Support needs during claim

Figure 35 survey question F4. Did you require help with any of the following when you tried to make your claim for Universal Credit?  

Base: drop-out claimants (2,069). 

In the qualitative interviews, participants described seeking help to check eligibility, complete an application or with difficulties that arose when trying to make a joint claim.  

I think it’s about having someone you could go to, if you had any questions or you’re unsure of anything. Rather than working it out yourself.

(Male, in-work, drop-out claimant) 

Sources of help for making a claim  

A third of drop-out claimants (34%) who needed help making a UC claim looked on the internet or GOV.UK for advice, while a quarter (24%) looked to Family or Friends, and a fifth (20%) looked to Jobcentre Plus staff or a work coach.  

Figure 36 Sources of help for making a claim

Figure 36 survey question F6. Where did you go for help?  

Base: drop-out claimants who needed help making a UC claim (827) 

In the qualitative interviews, drop out claimants who needed help making a UC claim described looking on the GOV.UK website for initial guidance but preferred to speak to someone for more specific advice. However, they struggled to get the advice they needed, and this was a contributing factor to them dropping out. 

It’s a nightmare calling them (DWP) because when you do call them, if you call and don’t speak to the same person they just say to email, and someone will call you back. 

(Female, in-work, drop-out claimant) 

Claim stages completed before drop-out 

Before dropping out of the UC claims process, over 4 in 10 drop-out claimants (45%) completed a claimant commitment, around 3 in 10 (31%) had booked a first interview with a Jobcentre Plus adviser or Work Coach, and a further 3 in 10 (27%) had their first interview with a Jobcentre Plus adviser or Work Coach. 

Figure 37 Stages complete before drop-out

Figure 37 survey question F7. Which of the following stages of the claim did you complete?  

Base: drop-out claimants (2,069).  

Drop-out claimants who were more likely to have either completed a Claimant Commitment, booked a first interview with a Jobcentre adviser or work coach, or attended a first interview prior to dropping out were aged 56 and over, had degree level qualifications or had been in their current job for less than 6 months.  

Three-quarters of drop-out claimants (74%) who had not completed a Claimant Commitment, booked a first interview with a Jobcentre adviser or work coach, or attended a first interview had started the online application before dropping out of the process. 

Figure 38 Progress with claim

Figure 38 survey question F8. How far did you progress with your Universal Credit claim?  

Base: drop-out claimants who did not complete a claimant commitment, book an interview, or have first interview with Jobcentre advisor or work coach (451). 

Drop-out claimants’ income sources 

Four in 10 drop-out claimants (38%) used income from work to cover expenses instead of claiming UC, while 3 in 10 (31%) used savings, and a quarter relied on family or friends (24%).  

Figure 39 Income sources instead of UC

Figure 39 survey question F9. What income sources did you use to cover your expenses instead of claiming Universal Credit?  

Base: drop-out claimants (2,069) 

Drop-out claimants who had spent most of their time not working were more likely to receive money from family and friends (41%). Those with a disability were also more likely to receive money from family and friends (29% compared to 21% without a disability).  

In the qualitative interviews, participants in the drop-out group described borrowing money from friends or family or being financially dependent on a partner. This also included a situation where a participant had returned to a partner after splitting up. 

By the time they could have received UC, there were participants that had already returned to work, so did not need to progress their claim. 

Communication and preferences  

Drop-out claimants (77%) and non-claimants (89%) were more likely to be comfortable using government services online, for example to apply for benefits, than legacy claimants (58%). 

Figure 40 Comfort with online government services

Figure 40 survey question G1. How comfortable would you be using government services online? (e.g. applying for benefits, applying for a passport, applying for a driver’s license)?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

In the legacy claimant group, respondents who were uncomfortable using online government services were more likely to be: 

• older (55% aged 56 or over compared to 22% of those aged 26 to 35)  

• have no qualifications (57% compared to 21% with degree)  

• have a physical or mental health condition (48% compared to 25% without a disability)  

Those on ESA and Housing Benefit were also more likely to feel uncomfortable using online government services than those on IS and JSA (50% and 44% compared to 29% and 34% respectively). 

Letters from DWP was the communication channel all 3 groups of benefit claimants said they would pay most attention to announcements to general changes on benefits and tax credits, although this was significantly higher among (legacy claimants 79%, compared to 52% of non-claimants, and 46% of drop-out claimants). Drop out claimants were also equally likely to pay attention to personal emails from the DWP (46%, compared to 41% of legacy claimants, and 31% of non-claimants). 

Figure 41: DWP communication channels claimants pay attention to

Figure 41 survey question: G2. Which of the following channels would you pay most attention to, for announcements on general changes to benefits and tax credits?  

Base: drop-out claimants (2,069); legacy claimants (1,951) and non-claimants (223) 

In the drop-out group, younger claimants were more likely to pay attention to announcements to general changes on benefits and tax credits on social media (32% of those 25 and under compared to 9% over those aged 46 or over). Under 25s were also more likely to pay attention to a text message from DWP (39% compared to 29% aged 26 or over). Those with a degree were more likely to pay attention to personal email (54% compared to 46% overall). 

Among legacy claimants, those aged under 25 were most likely to pay attention to a text message, personal email and social media. Those with degree were more likely to pay attention to personal email (55% compared to 41% overall).  

Segments  

Across the 6 segments, drop-out and non-claimant respondents were most likely to be in the ‘working and happy’ segment (36% drop-out claimants and 34% non-claimants) or the ‘financial strugglers’ segment (33% drop-out claimants and 49% non-claimants). Legacy claimants were spread across the other 4 segments fairly equally (22% ‘working and eager’, 21% ‘childcare and care barriers’, 31% ‘health and age barriers’, 18% ‘complex barriers’).  

Figure 42 segments

Figure 42: Base: all drop-out claimants (2069); legacy claimants (1951) and non-claimants (223) 

Segment B: Financial strugglers (22% claimants) 

People in the financial strugglers segment were typically in work but struggling financially and sought support to increase their earnings. Key characteristics of this segment were: 

• drop-out claimants and non-claimants 

• being in work (95%) 

• struggling financially, likely to run out of money 

• more likely to live as a couple 

• better qualified than average 

Key barriers for this group included a lack of skills and issues relating to the cost or availability of transport to allow them to work more. This group also needed support to access education to help them earn more.  

Case study: Segment B - Female, 36 to 54, Drop-out claimant 

The participant lived with her parents and 3-year-old child. She was working full-time as a project manager for the NHS and her daughter was in full-time childcare. As a single mum, she found it difficult to make time to study for a qualification with the intention of increasing her income.  

She described money as tight but did not generally run out and was able to borrow from her parents should she need. She knew very little about non-financial support and felt that UC was under-resourced. 

The DWP are like the NHS, they are trying their best to help those who need it, with very little funding.  

(Female, in-work, drop-out claimant)

Segment C: Not working but eager (20% claimants)  

People in the not working but eager segment were mostly out of work but keen to work and felt that, with the right support, work was a realistic goal. Key characteristics of this segment were: 

• drop-out claimants, non-claimants and legacy claimants  

• mostly out of work (80%) 

• mostly single and childfree 

• feeling more fulfilled if in work 

The main barriers faced by this segment were a lack of job opportunities and the cost of transport. They also felt that COVID-19 had a negative impact on their ability to find work. This segment said they needed support with the job seeking process, job interviews and cost of travel.  

Case study: Segment C - Male, 26 to 35, Drop-out claimant 

The participant lived with his partner. He had a master’s degree and had previously worked in the policy and non-government organisation sector but struggled since the COVID-19 pandemic find work in this sector. He was willing to look for a job outside of his chosen field but felt reluctant to do so. 

The participant was living off his savings, and worried about money. He found the UC application process to be long and inflexible and felt more transparency and communication was needed from DWP. 

In the end we were just thinking like how many more papers will they ask us for or how many interviews do we have to attend. 

Male, 26 to 35, Drop-out claimant 

Segment D: Childcare and care barriers (10% claimants) 

People in the childcare and care barriers segment were mostly out of work due to childcare issues and care responsibilities. Key characteristics of this segment were: 

• legacy claimants 

• out of work (96%) and nearly half had never worked 

• most likely to be female and single parents 

• living in social housing and on IS 

The key barrier for this group was childcare and caring responsibilities. They felt there was a lack of suitable jobs that fitted around caring responsibilities and said they needed support with childcare. However, some respondents in this segment felt that their child’s needs were too complex for childcare to be a feasible option. 

Case study: Segment D - Female, 26 to 35, Legacy claimant 

The participant was a single mum to 2 children (aged 4 and 6). She had never worked, left school early and had experienced several bereavements in her lifetime. She said that work was not a priority. Her daughter had separation anxiety, and she also struggled with her mental health. 

She believed that she budgets well but needed to borrow money from her brother for some purchases, for example, school shoes. She was reluctant to move over to UC as she felt that the monthly payments would cause her a lot of anxiety. 

I don’t want to feel like I’m back into a corner and loads of pressure to move over to UC. 

Female, 26 to 35, Legacy claimant

Segment E: Health and age barriers (16% claimants)  

People in the health and age barriers segment were out of work due to mental or physical health conditions and felt unable to work as a result. Key characteristics of this segment were: 

• mostly legacy claimants (87%) 

• out of work and many had spent most of their time not working (43%) 

• more likely to be in the older age group (aged 56 or above)  

• most likely to have no qualifications 

The key barrier for this segment was having a mental or physical health condition which limited their ability to work. Some also felt that they lacked skills to get a job.  

For some in this segment, their condition was too severe for work to be possible but for others they wanted support getting a suitable job. 

Case study: Segment E - Male, 46 to 55, Legacy claimant 

The participant lived with his partner and 2 children (aged 2 and 10). He worked fitting washing machines until 2009 when he had kidney failure which led to him being registered visually impaired. He also had diabetes and a mental health condition.  

He believed that work was unrealistic due to his physical and mental health conditions. 

While he budgeted his outgoings, he had credit cards and was juggling debt repayments alongside essential outgoings. He said he had little knowledge of UC; he was unaware what he would be entitled to and was concerned about waiting for the first payment. 

I haven’t really thought about working, to tell you the truth.

Male, 46 to 55, Legacy claimant 

Segment F: Complex barriers (11% claimants) 

People in the complex barrier segment were currently not working, many had health conditions and caring responsibilities, and felt unable to work. Key characteristics of this segment were that they were: 

• mostly legacy claimants 

• likely to be older 

• not to have dependent children 

• likely to have a mental and/or physical health condition 

The key barriers for this segment were poor health, being near retirement age and having caring responsibilities. Despite having faced several barriers to work, this segment did not want support to improve their skills or search for a job.  

Case study: Segment F - Male, 56+, Legacy claimant 

The participant lived with his wife and daughter. He was a carer for his wife. He was a fisherman but medically retired 25 years ago. He said that he budgeted incomings and outgoings and has never been in debt because they live frugally. 

The participant had good knowledge of UC, but he felt that UC was not fit for everyone and was more geared towards those that could work. He felt the system did not consider those with health conditions who were unable to work. He said he was frightened of UC and was concerned about being hassled by DWP. 

I don’t think anything will help. I don’t see work in my future with all the health stuff, especially my mental health. I also retire in 2 years; I want to be left alone. 

(Male, 56+, Legacy claimant)

Conclusions 

Experience and attitudes towards work 

The majority of drop-out claimants and non-claimants were employed, as were their partners. Legacy claimants were mainly out of work and not looking for work, particularly those in receipt of IS and ESA. 

A third of legacy claimants had caring responsibilities (34%) and two-thirds had a disability (67%), and these were felt to create significant barriers to working or earning more.  

The types of barriers faced by participants influenced whether paid employment was perceived as a realistic goal. Legacy claimants were more likely to experience multiple, complex barriers making employment unlikely. 

Income and budgeting behaviours 

Around 7 in 10 drop-out claimants, legacy claimants, and non-claimants regularly budget, with around half of those who budgeted were doing so at least weekly. Over 4 in 10 drop-out and legacy claimants ran out of money before their next payment most of the time. Those who were particularly likely to do so were those with physical and mental health conditions. 

The majority of drop-out, legacy, and non-claimants said that they did not need support managing their budget. Barriers to budgeting were typically perceived as beyond their control. Participants, particularly legacy and drop-out claimants felt that they did not receive enough money to cover their essential costs.  

Awareness of UC 

Existing knowledge of UC was typically from informal sources such as friends and family. If participants wanted to find out more, they would use the GOV.UK website or Jobcentre Plus.  

Reasons for not claiming UC 

Legacy claimants often perceived UC to be aimed at those in or seeking employment. In line with this, those with no qualifications and on ESA were particularly unlikely to have considered applying. This group had a range of concerns about UC and preferred to remain on their current benefit. The prospect of monthly payments was off-putting.  

Non-claimants typically did not consider claiming and often believed that they would not be eligible. 

Understanding the reasons and impact of UC drop-out 

Four in 10 drop-out claimants needed some help when they tried to make a claim, particularly with checking eligibility and completing the application. Those who were older, with no qualifications, and with a disability were more likely to need help. 

Almost half of drop-out claimants had completed a claimant commitment, and around 3 in 10 had either had their first interview with a work coach or scheduled a first interview with a Work Coach. The majority of drop-out claimants who had not done these things, had started the online application. 

Reasons for dropping out were typically linked to the length and complexity of the process; difficulties with communications; or issues around eligibility and changes in circumstances.  

Communication and preferences  

Across all 3 groups, respondents were likely to feel comfortable using government services online. Among drop-out and legacy claimants, those aged 56 or over, with no qualifications, and with a disability were more likely to feel uncomfortable using government services online.  

Across all 3 groups, respondents were more likely to pay attention to announcements on changes to benefits and tax credits made via letters from DWP, particularly legacy claimants. 

Younger drop-out and legacy claimants, as well as those with degree level qualifications, were among the most likely to pay attention to electronic means of communication, including social media, email, and text messages.