Sir Iain Duncan Smith, the architect of the UK’s universal credit system, has criticised subsequent governments for mismanaging the welfare programme, particularly in response to the COVID-19 pandemic. Universal credit was introduced in 2013 with the aim of simplifying multiple welfare benefits into a single streamlined payment, designed to both reduce fraud and encourage work.
Duncan Smith recounted that his initial goal was to consolidate the complex web of benefits—ranging from 30 to 60 different types—into one system that adjusted support based on earnings. However, he said he did not foresee the sharp rise in claims related to mental health conditions, especially among children. Official data from March 2026 shows that 91 percent of new universal credit claims since January 2022 have been attributed to “mental and behavioural disorders.”
The former work and pensions secretary argued that decisions made during the pandemic led to long-term difficulties in managing the system. “We just ended up coughing money out to people because we were worried some wouldn’t get it,” he said, describing the approach as a political choice to distribute payments broadly without sufficient safeguards. He added that efforts to reduce support after the emergency measures proved challenging, noting that “once you give people money, it’s really difficult to get it back.”
Duncan Smith expressed concern about what he terms the “medicalisation” of everyday life struggles, with particular emphasis on children who, in his view, are prematurely placed on substantial sickness benefits. He pointed to the overlap between universal credit sickness payments and personal independence payment (PIP) claims, which often occur for the same conditions. Research from the Centre for Social Justice, a think tank chaired by Duncan Smith, found nearly two-thirds of universal credit health claimants also receive PIP, with fewer than one in six PIP recipients in work.
The think tank’s recent report, *State of Dependency*, characterises the welfare system as “dysfunctional,” highlighting that nearly 6.7 million people currently claim out-of-work benefits. The report also noted that seven in ten young people on sickness or disability benefits remain on them a decade later, while approximately one million young people are not engaged in employment, education, or training, with over half of this group reliant on welfare support.
An independent inquiry into welfare payments revealed that nearly two million people continue to receive universal credit sickness benefits without current eligibility being verified. Multiple structural issues within the system—including interactions between various benefits and taper rates—contribute to claimants becoming trapped in long-term dependency.
The total cost of universal credit is growing rapidly, with projections by the Office for Budget Responsibility estimating that spending could reach £103 billion by 2030. Despite these challenges, Duncan Smith maintains that the universal credit framework itself remains sound, attributing most difficulties to policy decisions made by ministers over the years. “The system is what we design. The policy is how we screw it up,” he said.
Looking ahead, Duncan Smith emphasised the need to restore a focus on the “moral purpose” of work, encouraging beneficiaries to re-enter employment. He recalled a message from a constituent who, after a period on benefits, was able to buy flowers for his mother with his own wage. “Work frees you from dependency and makes you stand tall,” he said, calling for reforms that re-centre the welfare system around employment as a fundamental societal value.