4: Financial and mental health impact

Our fourth key finding from our research into the Universal Credit system is that navigating the system impacts mental health and that where sanctions are applied or lower amounts awarded one month to the next, this has a significant financial impact.

Single parents Cheryl and Laura talk about the stress caused by the system and the knock-on impact it has on mental health.

Cheryl’s story

Laura’s story

Our recommendations

To address issues around the impact of the Universal Credit system and sanctions in particular on financial and mental health: 

The government should set a more positive tone in its leadership of the system to help create a less hostile environment and ensure this translates to training of and expectations of staff. 

The DWP must use its review of Universal Credit to: 

  • make sure there is clear information available to claimants on how to challenge a sanction and signposting to financial and mental health support 
  • look at the specific challenges single parents face in accessing UC and how these may be compounded by other factors such as disability, ethnicity or migration status 

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Together, we can push the government to create a fairer Universal Credit system for single parents and their children.

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