Universal Credit: the wait for a first payment

Work and Pensions Committee Closed Inquiry
Opened: 9 Mar 2020 Closed: 2 Feb 2022 Parliament page
This inquiry looked at the five week wait that faces new Universal Credit claimants before receiving their first benefits payment. It examined the options that the Department for Work and Pensions could consider for reducing or ending the wait and explore other possible solutions. Read the call for evidence to … Read more
40 Recommendations
15 Conclusions
1 Report
6 Oral sessions
7 Letters
6 Events
Activity timeline 15 events
16 Jul
2021
Correspondence
12 Jan
2021
Report published
19 Oct
2020
Report published
24 Sep
2020
Correspondence
11 Sep
2020
Correspondence
11 Sep
2020
Correspondence
11 Sep
2020
Correspondence
2 Sep
2020
Oral evidence
28 Aug
2020
Correspondence
15 Jul
2020
Oral evidence
1 Jul
2020
Oral evidence
24 Jun
2020
Oral evidence
Oral evidence sessions 6 sessions
2 Sep 2020
View on parliament.uk
Work and Pensions Committee meeting
Gareth Davies · Department for Transport Jonathan Davidson · Financial Conduct Authority Joshua Reddaway · National Audit Office Nisha Arora · Financial Conduct Authority
15 Jul 2020
View on parliament.uk
Work and Pensions Committee meeting
Neil Couling · Department for Work and Pensions Will Quince MP · Department for Education
1 Jul 2020
View on parliament.uk
Work and Pensions Committee meeting
Gareth Morgan · Ferret Information Systems Phil Booth · medConfidential Rt Hon Sir Iain Duncan Smith MP · Department for Work and Pensions Stephen Brien · Department for Work and Pensions The Baroness Stroud · Department for Work and Pensions Tom Loosemore · Public Digital
24 Jun 2020
View on parliament.uk
Work and Pensions Committee meeting
Adam Smith · Kent County Council Hugh Owen · Riverside Housing Group Jacqueline Hickmore · Cornwall Housing Jeremy Hewer · Scottish Federation of Housing Associations Laura Courtney · Community Housing Cymru Muhammed Butt · London Councils Noel Duke · Harrogate Borough Council Sheila McKandie · Highland Council Sue Ramsden · National Housing Federation
17 Jun 2020
View on parliament.uk
Work and Pensions Committee meeting
Anvar Sarygulov · Bright Blue Ben Fell · Policy in Practice Dr Mandy Cheetham · Teesside University Dr Sophie Wickham · Department of Public Health, Policy & Systems, University of Liverpool Mike Brewer · Resolution Foundation Nicholas Timmins · Institute for Government Patrick Spencer · Centre for Social Justice
10 Jun 2020
View on parliament.uk
Work and Pensions Committee meeting
Emma Revie · Trussell Trust Gemma Hope · Leonard Cheshire Iain Porter · Joseph Rowntree Foundation Jennifer Harrison · Changing Lives Mark Gale · Young Women's Trust Minesh Patel · Mind Peter Tutton · StepChange Tom Lee · Child Poverty Action Group
Title HC No. Published Items Response
Third Report: Universal Credit: the wait for a first payment HC 204 19 Oct 2020 55 Responded
Recommendations & Conclusions
6 results
Clear
27 Recommendation Accepted
Third Report: Universal Credit: th…
We recommend that vulnerable claimants or claimants with specific needs are prioritised for having the...
We recommend that vulnerable claimants or claimants with specific needs are prioritised for having the housing element of their Advance paid directly to their landlord. This could include people with learning disabilities, people with mental illness, people who have previously … Read more
Government Response
The government states that existing provisions, such as Managed Payments to Landlords and a new online service for direct rent payments, already sufficiently address the committee's suggestion. They argue against prioritising advances due to potential risks and highlight specialist budgeting support.
Department for Work and Pensions
View details
34 Conclusion Accepted
Third Report: Universal Credit: th…
DWP has made substantial progress in improving payment timeliness,.
DWP has made substantial progress in improving payment timeliness,. The Department has increased the proportion of people paid on time from just over half in 2017 to over 90% in 2020—a significant feat given the recent upsurge in Universal Credit … Read more
Government Response
The government asserts that no one has to wait five weeks for UC payments, citing advances available from day one and two-week run-ons for legacy benefits. They state that sufficient provision is in place and reject the idea of continuing tax credits with UC or introducing APAs by default.
Department for Work and Pensions
View details
40 Recommendation Accepted
Third Report: Universal Credit: th…
We welcome the Minister’s recognition that the Department needs to improve its understanding of the...
We welcome the Minister’s recognition that the Department needs to improve its understanding of the reasons why so many people claim for Universal Credit long after they become eligible. The Department must prioritise this work so that it can tackle … Read more
Government Response
The government agrees on the importance of timely applications and states that a UC Full Service Omnibus Survey published in February 2019 already investigated reasons for delayed claims, finding that a fifth of claimants delayed due to job seeking or lack of awareness.
Department for Work and Pensions
View details
44 Conclusion Accepted
Third Report: Universal Credit: th…
While monthly payments do mirror the world of work for many, DWP’s own figures show...
While monthly payments do mirror the world of work for many, DWP’s own figures show that a significant minority of people who claim Universal Credit received or continue to receive weekly or fortnightly wages. Other sources suggest that a majority … Read more
Government Response
The government acknowledges that claimants can struggle with monthly budgeting but states that Universal Credit already allows for more frequent payments (twice or four times monthly) and that Work Coach guidance already directs offering financial advice and Alternative Payment Arrangements.
Department for Work and Pensions
View details
45 Recommendation Accepted
Third Report: Universal Credit: th…
We recommend that the Department provide new and clearer guidance for Work Coaches to mitigate...
We recommend that the Department provide new and clearer guidance for Work Coaches to mitigate the impact of the wait and monthly payment system by making the option of more frequent payments under Alternative Payment Arrangements easy for all claimants … Read more
Government Response
The government reiterates that UC is paid monthly by default but more frequent payments (APAs) are available where claimants struggle. They state that existing guidance for Work Coaches already covers offering financial guidance and considering APAs, preferring a tailored, individualised approach over a universal offering.
Department for Work and Pensions
View details
55 Conclusion Accepted
Third Report: Universal Credit: th…
The five week wait for a first payment of Universal Credit is an inevitable consequence...
The five week wait for a first payment of Universal Credit is an inevitable consequence of the fixed monthly assessment period. It is very difficult to remove the wait for 88 Universal Credit: the wait for a first payment all … Read more
Government Response
The government states that no one has to wait five weeks for payment because advances are available and have been widely distributed, serving as a crucial support measure.
Department for Work and Pensions
View details
Government Response AI assessment · 55 of 40 classified
Accepted 6
Accepted in Part 5
Acknowledged 8
Deferred 2
Not Addressed 12
Rejected 22
Total 40 recs + 15 conclusions
Correspondence 7 letters
16 Jul 2021 Correspondence with Minister for Welfare Delivery - joint meeting with House of Lords Economic Affairs Committee follow up
Parliament page
24 Sep 2020 Correspondence from NAO about net recovery rate of fraud and error on Universal Credit
Parliament page
11 Sep 2020 Correspondence with Minister for Welfare Delivery on Universal Credit: the wait for a first payment – follow up to 15.7 evidence session
Parliament page
11 Sep 2020 Correspondence with Financial Secretary to the Treasury on the impact of tax credits debt repayments on Universal Credit claimants
Parliament page
11 Sep 2020 Correspondence with the National Audit Office (NAO) on analysis of rent arrears of Universal Credit claimants
Parliament page
28 Aug 2020 Correspondence with the Financial Conduct Authority about best practice in the consumer lending
Parliament page
27 Apr 2020 Correspondence with the Minister for Welfare Delivery about first payments of Universal Credit
Parliament page