The Paradox of More Efficient Poverty Policies

Abstract

The changing socio-economic environment is increasing the instability of the labor market and the working poor, triggering welfare needs. In order to respond to welfare needs, the social security system seeks to improve efficiency and effectiveness and promotes redesign by adopting new digital technologies. In particular, the adoption of real-time information system that can more accurately and quickly respond to the increasing welfare needs is emerging as an ideal form of social assistance. Since 2012, the United Kingdom has adopted and operated integrated assistance called Universal Credit and Real-time Information System as part of welfare reform. However, unlike the expectation that Universal Credit and Real-time Information can reduce poverty by enabling efficient social assistance, side effects are occurring such as reducing salary stability and increasing uncertainty in future income. Therefore, this study examines the paradoxical situation in which Universal Credit and Real-time Information rather increases poverty.