Universal Credit is a radical new approach to welfare: • It will bring together different forms of income-related support and provide a simple, integrated, benefit for people in or out of work. • It will consist of a basic personal amount (similar to the current Jobseeker’s Allowance) with additional amounts for disability, caring responsibilities, housing costs and children. • As earnings rise, we expect Universal Credit will be withdrawn at a constant rate of around 65 pence for each pound of net earnings. Higher earnings disregards will also reinforce work incentives for selected groups. When introduced, Universal Credit will initially apply to new claims. It will be phased in for existing benefit and Tax Credit recipients. There will be no cash losers at the point of change, ensuring that no one will see their benefits reduced when Universal Credit is introduced.