The Universal Credit (Work-Related Requirements) In Work Pilot Scheme (Extension) Order 2025
The Universal Credit (Work-Related Requirements) In Work Pilot Scheme (Extension) Order 2025 extends an existing pilot program testing mandated work requirements for employed Universal Credit claimants.
The extension, effective February 19, 2025, covers England, Wales, and Scotland, and continues the scheme for another twelve months.
The order leverages existing legislation and claims to have a non-significant impact, foregoing a full impact assessment.
This decision allows for continued data collection and evaluation of policy effectiveness.
Arguments For
Continued Data Collection: Extending the pilot allows for more comprehensive data collection on the effectiveness of applying work-related requirements to Universal Credit claimants who are already employed. This evidence can inform future policy decisions.
Impact Assessment Justification: The explanatory note claims no significant impact on any sector is foreseen, justifying the extension without a formal impact assessment.
Policy Refinement: The pilot scheme allows policymakers to refine the implementation of work-related requirements, potentially improving their effectiveness and fairness while reducing unintended consequences.
Legal Precedent: The extension is made under Section 41(5)(a) of the Welfare Reform Act 2012, establishing a legal basis for its continuation based on previous orders.
Arguments Against
Resource Allocation: Continued funding of the pilot scheme may divert resources from other potentially more effective welfare programs.
Limited Scope: The pilot scheme's geographical limitation (England, Wales, and Scotland) may limit the generalizability of findings to the entire UK, creating bias in policy implications.
Unforeseen Consequences: Even without a full impact assessment, unexpected negative consequences could arise from extending the scheme. Ongoing monitoring is crucial, but may not be comprehensively sufficient.
Alternative Approaches: Instead of extending the pilot, alternative methods for determining the efficacy of work-related requirements could be explored, potentially involving more focused interventions or randomized controlled trials.
- Citation, commencement and extent (1) This Order may be cited as the Universal Credit (Work-Related Requirements) In Work Pilot Scheme (Extension) Order 2025 and comes into force on 19th February 2025. (2) This Order extends to England and Wales and Scotland.
This section provides the official title and effective date of the order (February 19, 2025).
It also specifies its geographical scope: England, Wales, and Scotland.
- Extension of the In Work Pilot Scheme The In Work Pilot Scheme in Part 3 of the Universal Credit (Work-Related Requirements) In Work Pilot Scheme and Amendment Regulations 2015 is to continue to have effect until the end of the period of twelve months beginning with 19th February 2025.
This section details the core purpose: extending the In-Work Pilot Scheme.
The scheme, established in the 2015 Regulations, will continue for twelve months from February 19, 2025.
Explanatory Note (This note is not part of the Order) This Order extends the period for which the pilot scheme established under the Universal Credit (Work-Related Requirements) In Work Pilot Scheme and Amendment Regulations 2015 ("the In Work Pilot Scheme Regulations") has effect. The In Work Pilot Scheme Regulations established the pilot scheme under section 41 of the Welfare Reform Act 2012 (c. 5) for the purpose of testing the imposition of work-related requirements on universal credit claimants in paid work, where those requirements would otherwise be suspended by virtue of regulation 99(6) of the Universal Credit Regulations 2013 (S.I. 2013/376). Regulation 8 of the In Work Pilot Scheme Regulations provides for the pilot scheme to cease to have effect at the end of a period of three years unless the scheme continues to have effect by Order of the Secretary of State. Seven Orders made under section 41(5)(a) of the Welfare Reform Act 2012 have continued the effect of the pilot scheme, the latest being the Universal Credit (Work-Related Requirements) In Work Pilot Scheme (Extension) Order 2024 (S.I. 2024/159), which continued the scheme in effect for a period of twelve months beginning on 19th February 2024. Article 2 of this Order continues the effect of the pilot scheme for a further period of twelve months beginning on 19th February 2025. A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, public or voluntary sector is foreseen.
The explanatory note provides context.
It explains that the pilot scheme tests whether imposing work requirements on employed Universal Credit claimants is effective. This Order is one of several extending the pilot beyond the initial three-year period.
The note also states that a full impact assessment was deemed unnecessary due to the perceived minimal impact on various sectors.
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