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edscoble-
It is technically a benefit, people often think "benefits is for the lazy".
If it's a problem, that depends on who you ask... The Economist (I know) think this is bad, because it lets companies get away with underpaying people / have jobs that make no economic sense.
But I am not so sure wages will go up in all cases, some people can only work part-time, do you rather have them not work at all?
I am just not sure, as I don't know how UC is distributed over what jobs, I know I had working tax credits years ago before I got my degree and I doubt I would automatically be paid more if those didn't exist.
JWestland
And that the distribution curve of incomes is heavily skewed towards a lot of low income jobs, with far fewer well paid people contributing towards the income tax pot.
The question should be: Why are half of Universal Credit claimants working? If she's so mad about benefits..