Yihong Bai, postdoctoral researcher at Western University, will present the paper “Assessing the impact of welfare reform in the UK on mental health, life satisfaction, and impairments: a quasi-experimental study”. The presentation is taking place at 9:30am in GSB 307. Yihong is also a graduate of the MBE program. Join us!

Abstract:

Universal Credit (UC) was introduced in the UK in 2013 to gradually replace six benefit schemes by a single benefit scheme. UC has been criticized for its complex online application system, lengthy wait period, and its association with increased financial hardships among claimants. Previous studies have highlighted the system’s challenges, but this study aims to assess multiple health-related outcomes and financial implications of transitioning to UC. Utilizing data from the UK Longitudinal Household Survey, this quasi-experimental study applied the Callaway and Sant’Anna difference-in-differences (CSDID) method, to account for the staggered implementation of UC and treatment effect heterogeneity. We found that the transition to UC led to increased psychological distress and life dissatisfaction, with no significant effects on physical impairment. Furthermore, transitioning to UC led to a reduction in social benefit income; however, those who transitioned did not have significantly decreased personal or household net income over time. Despite UC’s goals to simplify the welfare system and encourage employment, the findings call for urgent policy adjustments to genuinely support claimants’ well-being and financial health, ensuring that welfare reforms do not inadvertently harm the very individuals they aim to assist.