<p>Universal Credit is a modern, flexible benefit which is replacing six benefits. The six benefits being replaced all have complex and inefficient systems based on aging, inflexible IT. Universal Credit uses a modern, digital system which stood up to the test of Covid-19 where it quickly ensured three million new claimants were protected from the financial impact of the pandemic.</p><p> </p><p>Universal Credit reduces the complexity of the working age benefits system and removes the distinction between in work and out-of-work support.</p><p> </p><p>Work incentives are improved by introducing a smoother, more transparent reduction of benefits at a consistent and predictable rate when people move into work and increase their earnings.</p><p> </p><p>In March we published <em>Transforming Support: The Health and Disability White Paper</em> which sets out our ambitious plans to transform the health and disability benefits system for the future so it focuses on what people can do rather than on what they cannot.</p>