Mental health effects of the universal credit rollout 2009–2019 on adults with dependent children: evidence from the UK household longitudinal survey

Abstract

Background: Universal Credit (UC) is the UK’s largest recent welfare reform intended to streamline the benefits system and improve work incentives. However, UC features, including sanctions and work-related conditionality, may undermine financial security and harm mental health. These effects may be particularly important for adults with dependent children, who may have less flexibility to increase working hours or change employment. Therefore, we assessed the impact of UC introduction on mental health among families with dependent children. Methods: We employed a Difference-in-Differences design to estimate the causal impact of UC rollout on mental health (SF-12 Mental Component Summary, MCS: SD=10, scores ≤50 indicate common mental disorder, ≤45 probable depression) among adults with dependent children using over 77,000 person-year observations (UK Household Longitudinal Study, 2009-2019). Exploiting the staggered UC rollout across Local Authority districts, determined by administrative schedules and plausibly exogenous to local mental health trends, we compared outcomes in respondents self-reporting UC or legacy benefits to recipients of other state benefits, before and after UC implementation in their area. Subgroup analyses examined family structure, parental age and family size. Results: UC was associated with a 0·94-point decline in MCS (95% CI: -1·69 to -0·19) among eligible adults relative to the comparison group. The prevalence of depression increased by 3·8 percentage points (95% CI: 0·5 to 7·2). Harms were more clearly evidenced among large families, couples, and older parents. Conclusion: Policymakers should consider targeted reforms to mitigate adverse mental health consequences of UC for families, particularly those facing greater financial pressures.