IRRV Alert - week ending 23rd October 2020

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Universal Credit: the wait for a first payment (19 October 2020)

 

 

 

 

 

Universal Credit: the wait for a first payment

Inquiry

Universal Credit has a “baked in” wait for the first payment. After completing all of the stages of their application, claimants must then wait for at least five weeks to receive their award. They can ask for an Advance payment if they need money more urgently, which they then pay back out of their future Universal Credit payments.

Many organisations have concluded that the five week wait for a first Universal Credit payment must be reduced or eliminated entirely. There is, however, a lack of agreement about how this might be most effectively—and affordably—achieved. Some of the options suggested include:

  • Scrapping the five week wait for all claimants: for example, by making the Advance non-repayable;
  • Offering non-repayable Advances to some claimants: for example, those considered vulnerable;
  • Allowing more flexibility for the start of a claim to be backdated;
  • Extending run on payments to cover all legacy benefits;
  • Substantially reducing the rate at which Advance Payments—the main existing mitigation measure—are paid back, to help claimants better manage their money;
  • Paying UC two-weekly, like many legacy benefits, rather than monthly.

The Committee wants to help the Government to better understand the upsides and downsides of these options, and explore other possible solutions.

What does the Committee want to hear about?

The Committee would like to hear your views on the following questions about the wait for a first payment of Universal Credit.

You can respond as an individual, a group or an organisation. You don’t need to answer all of the questions. The deadline for sending your views is Friday 17 April 2020.

  1. To what extent have the mitigations the Government has introduced so far (e.g. Advance payments) helped to reduce the negative impact of the five week wait for UC claimants?

        - What problems do claimants still experience during the five week wait?

    2. What is the best way of offsetting the impact of the five week wait?

        - Is it possible to estimate how much this would cost the Department?

        - Is it possible to estimate any costs or savings to third parties (for example, support organisations)?

   3. Are different mitigating options needed for different groups of claimants?

   4. Are there barriers or potential unintended consequences to removing the five week wait—either for claimants or the Department? How can they be overcome?

Reports and government responses

View all reports and government responses 

Third Report: Universal Credit: the wait for a first payment

Inquiry Universal Credit: the wait for a first payment

Committees Work and Pensions Committee

Get File 

Published 19 October 2020

 HC 204

 

 Report

Oral evidence transcripts

View all oral evidence transcripts 

2 September 2020

Inquiry Universal Credit: the wait for a first payment

Committees Work and Pensions Committee

Get File 

Published 4 September 2020

 Oral Evidence

15 July 2020

Inquiry Universal Credit: the wait for a first payment

Committees Work and Pensions Committee

Get File 

Published 20 July 2020

 Oral Evidence

1 July 2020

Inquiry Universal Credit: the wait for a first payment

Committees Work and Pensions Committee

Get File 

Published 7 July 2020

 Oral Evidence

Written evidence

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UCW0101 - Universal Credit: the wait for a first payment

Witnesses Financial Conduct Authority

Committees Work and Pensions Committee

Get File 

Published 9 October 2020

 Written Evidence

UCW0098 - Universal Credit: the wait for a first payment

Witnesses Coventry Citizens Advice

Committees Work and Pensions Committee

Get File 

Published 27 August 2020

 Written Evidence

UCW0099 - Universal Credit: the wait for a first payment

Witnesses London Councils

Committees Work and Pensions Committee

Get File 

Published 27 August 2020

 Written Evidence

Other publications

 

Correspondence

Committees exchange letters with government departments and others, often to request information or follow up on recommendations.

6 published

Contact us

We can’t usually help you with an individual problem or a specific complaint.

  • Email: workpencom@parliament.uk
  • Phone: 020 7219 8976 (General Enquiries) | For all media inquiries please contact Oliver Florence florenceo@parliament.uk / 02072191679
  • Address: Work and Pensions Committee | House of Commons | London | SW1A 0AA

© UK Parliament 2020

 


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