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
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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
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Work and Pensions Committee meeting
Neil Couling · Department for Work and Pensions Will Quince MP · Department for Education
1 Jul 2020
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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
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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
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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
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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
8 results
Clear
8 Conclusion Acknowledged
Third Report: Universal Credit: th…
People who are moving to Universal Credit through managed migration are doing so because of...
People who are moving to Universal Credit through managed migration are doing so because of a decision by the Government. Nothing in their own circumstances has changed. Under the Government’s plans, however, they would have to wait at least five … Read more
Government Response
The government acknowledges the concern for a seamless transition but states that no one has to wait five weeks for money due to advances and run-ons. It maintains that suitable provision is in place and implicitly rejects the premise that their transition is not seamless.
Department for Work and Pensions
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17 Conclusion Acknowledged
Third Report: Universal Credit: th…
Advance payments can provide a valuable lifeline to people who might otherwise face going five...
Advance payments can provide a valuable lifeline to people who might otherwise face going five weeks—or longer—without any income. The changes that DWP has introduced so far, especially allowing people to request Advances equivalent to their entire expected award and … Read more
Government Response
The government reiterates its view that advances are not loans and describes existing measures like limiting advance amounts, encouraging claimant consideration, Work Coach budgeting support, and the ability to defer repayments for up to three months. It is also considering automatic referral for budgeting support.
Department for Work and Pensions
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29 Conclusion Acknowledged
Third Report: Universal Credit: th…
Help to Claim is a hugely valuable service for people who are applying for Universal...
Help to Claim is a hugely valuable service for people who are applying for Universal Credit. But its focus is on helping people to complete their initial claim. It does not provide support for people throughout their claim, to help … Read more
Government Response
The government acknowledges the committee's observation about Help to Claim's focus, but defends the service's current scope and positive reception. It states that Help to Claim signposts users to other support services for debt advice, budgeting, and digital skills.
Department for Work and Pensions
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31 Conclusion Acknowledged
Third Report: Universal Credit: th…
DWP currently lacks a comprehensive system for recording and tracking claimants’ needs.
DWP currently lacks a comprehensive system for recording and tracking claimants’ needs. The introduction of pinned notes is a step in the right direction but, as the National Audit Office said, pinned notes are the digital equivalent of a post-it … Read more
Government Response
The government acknowledges the need for better tracking of claimants' needs and states that work is underway to collect sensitive information to provide more tailored support. It also notes that staff can already use pinned notes to flag ongoing easements.
Department for Work and Pensions
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33 Recommendation Acknowledged
Third Report: Universal Credit: th…
Support organisations have expressed concern that DWP’s approach to data sharing and consent has had...
Support organisations have expressed concern that DWP’s approach to data sharing and consent has had a detrimental effect on their ability to support vulnerable claimants. The Department now says it is exploring options for improving its model Universal Credit: the … Read more
Government Response
The government defends its explicit consent policy for data sharing, stating it is exploring options with SSAC and stakeholders to improve the process but does not commit to publishing details of progress or considering an implicit consent model.
Department for Work and Pensions
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38 Conclusion Acknowledged
Third Report: Universal Credit: th…
Repayments of tax credit overpayments can compound hardship for people who may already be struggling.
Repayments of tax credit overpayments can compound hardship for people who may already be struggling. The evidence that some people are left unaware of these debts, which can be several years old, until they make a claim for Universal Credit, … Read more
Government Response
The government acknowledges the impact of debt and explains existing support from Work Coaches and the Money and Pensions Service for claimants. They state an obligation to recover public funds but will continue to encourage HMRC to reduce historic tax credit debt.
Department for Work and Pensions
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50 Recommendation Acknowledged
Third Report: Universal Credit: th…
Faster Payments offer the Department a quick and efficient way to pay claimants.
Faster Payments offer the Department a quick and efficient way to pay claimants. They could, if more widely used, reduce the time that people have to wait for a first payment. The Department already has plans to increase its use … Read more
Government Response
The government acknowledges the recommendation by stating it is already examining how to modernise payment services through its 'Future Payments' programme, targeted for completion by 2022/23. However, it does not provide the detailed strategy, timings, or engagement plans requested.
Department for Work and Pensions
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54 Conclusion Acknowledged
Third Report: Universal Credit: th…
The coronavirus pandemic has put the Universal Credit system under unprecedented strain.
The coronavirus pandemic has put the Universal Credit system under unprecedented strain. It has also highlighted the strengths of its digital, automated processes: a manual system could not have coped with millions of new claims in such a short time. … Read more
Government Response
The government acknowledges the committee's recognition of Universal Credit's strong performance during the pandemic, highlighting its agile adaptation to support increased claims and maintained high payment timeliness.
Department for Work and Pensions
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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