The Universal Credit (UC) system includes elements designed to encourage claimants’ transition into employment. These range from measures ensuring people are financially better off (such as the taper rate and the work allowance) to penalising people for failing to take active steps towards work (conditionality and sanctions). These mechanisms cannot necessarily offset the systemic barriers to work many claimants face, but can influence decisions to look for and enter employment. This briefing outlines circumstances where those elements either do not work as well as intended, or actively hinder claimants’ transition to work. It also explores some of the barriers existing beyond the benefit system and offers suggestions on how UC could respond to those.