Conditionality and contentment: Universal Credit and UK welfare benefit recipients’ life satisfaction

Abstract Introduced in the United Kingdom 2012, Universal Credit (UC) is a welfare benefit that replaces six working-age ‘legacy’ benefits for out-of-work and low-income people. Designed with aim of simplifying incentivising paid work, UC represents deepening conditionality British state. Considering these developments, this paper quantitatively investigates effect on recipients’ life satisfaction. Data from Household Longitudinal Study analysed, primarily using fixed-effects regression approach. Results reveal significantly negative recipience Robustness checks alternative model specifications, including difference-in-differences inverse probability weighting, confirm finding. Additionally, mediation models give credence to idea also negatively affects satisfaction indirectly by increasing psychological distress. Heterogeneity tests indicate has less single parents’ compared non-parents. Meanwhile, more people not work (for reasons other than unemployment) those work. Discussion focuses potential specifically, implications future research policy are explored.