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:
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.
- 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?
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
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Published 19 October 2020
HC 204
Report
View all oral evidence transcripts
2 September 2020
Inquiry Universal Credit: the wait for a first payment
Committees Work and Pensions Committee
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Published 4 September 2020
Oral Evidence
15 July 2020
Inquiry Universal Credit: the wait for a first payment
Committees Work and Pensions Committee
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Published 20 July 2020
Oral Evidence
1 July 2020
Inquiry Universal Credit: the wait for a first payment
Committees Work and Pensions Committee
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Published 7 July 2020
Oral Evidence
UCW0101 - Universal Credit: the wait for a first payment
Witnesses Financial Conduct Authority
Committees Work and Pensions Committee
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Published 9 October 2020
Written Evidence
UCW0098 - Universal Credit: the wait for a first payment
Witnesses Coventry Citizens Advice
Committees Work and Pensions Committee
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Published 27 August 2020
Written Evidence
UCW0099 - Universal Credit: the wait for a first payment
Witnesses London Councils
Committees Work and Pensions Committee
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Published 27 August 2020
Written Evidence
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