The proposal has been presented as a possible change to the way the benefit system protects low-income households. According to Compass, the suggested guarantee would create a legal minimum for the basic rate of Universal Credit, with payments unable to fall below that level because of measures such as debt deductions or the benefit cap.
Proposal Would Introduce a Minimum Level for Universal Credit Payments
The suggested system would mean that Universal Credit rates are set through an evidence-based process, including information from people with direct experience of living on a low income. The aim would be to ensure that benefit payments provide enough support for everyday needs.
According to analysis from the Joseph Rowntree Foundation cited by Compass, a single adult requires £120 per week and a couple requires £205 per week to cover basic costs, excluding housing. Under the proposal, these figures would become the basis for a new minimum guarantee.
Current standard monthly Universal Credit allowances vary depending on a claimant’s circumstances. The Birmingham Mail reported that payments range from £338.58 per month for single claimants under 25 to £666.97 per month for joint claimants.
Compass said moving immediately to the proposed level would cost around £15 billion per year. The thinktank argued that a gradual approach could be used, similar to the way the minimum wage was introduced and later expanded over time. The organisation said a stronger social security system could support low-paid workers and people out of work by providing more financial stability while they look for employment opportunities.
Public Support Reported for an Essentials Guarantee Proposal
The proposal has also been supported by polling figures published by Compass. According to the thinktank, research from the Joseph Rowntree Foundation found that 59 per cent of people support a guarantee that everyone receiving Universal Credit can afford basic needs.
Support was reported to be higher among people who voted for the Labour Party in the 2024 general election, with 72 per cent backing the idea. Compass said support was lower among people intending to vote for Reform UK or the Conservative Party, but remained above the level of opposition.
The thinktank said 57 per cent of those surveyed believed the cost of living could not be properly addressed without improving conditions for people experiencing severe financial hardship. Among 2024 Labour voters, this figure was reported as 63 per cent.
The proposal has not been announced as government policy, and the DWP has not confirmed plans to introduce the suggested guarantee. The recommendation comes as part of a wider debate about the level of financial support provided through the welfare system and how payments should be protected from reductions.
Compass said the proposed change could reduce hardship and lower pressure on public services, while also affecting government spending through changes to tax revenue and benefit costs.
