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
12 results
Clear
1 Conclusion Not Addressed
Third Report: Universal Credit: th…
The wait for a first payment of Universal Credit is not the only source of...
The wait for a first payment of Universal Credit is not the only source of the problems people face, but it can exacerbate them. For people who may already be going through a difficult time, enduring five weeks—or longer—without any … Read more
Government Response
The government's response quotes and then rejects a separate recommendation about commissioning research on food bank use, rent arrears, and mental health, rather than addressing the committee's conclusion about the impact of the Universal Credit waiting period.
Department for Work and Pensions
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3 Recommendation Not Addressed
Third Report: Universal Credit: th…
The Trussell Trust’s data, described by the National Audit Office as the best research it...
The Trussell Trust’s data, described by the National Audit Office as the best research it has seen, establishes an association between Universal Credit and food bank use. We share the National Audit Office’s view that the Department should conduct further … Read more
Government Response
The government's response does not address the recommendation to conduct further research into the link between Universal Credit and food bank use, or to encourage the Trussell Trust to share its data. It instead references ministerial meetings with stakeholders and their publication.
Department for Work and Pensions
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9 Recommendation Not Addressed
Third Report: Universal Credit: th…
At present, the Government plans to mitigate the impact of the five week wait on...
At present, the Government plans to mitigate the impact of the five week wait on this group of claimants by offering two week run-on payments of some, but not all, of the legacy benefits they are currently receiving. That is … Read more
Government Response
The government response discusses changes to the Universal Credit deduction cap, reducing it from 30% to 25% from October 2021, and the rationale behind setting the cap, but does not address the committee's concerns regarding the five-week wait or two-week run-on payments for legacy benefits.
Department for Work and Pensions
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11 Recommendation Not Addressed
Third Report: Universal Credit: th…
We recommend that DWP set out, in response to our report, a detailed analysis of...
We recommend that DWP set out, in response to our report, a detailed analysis of how our recommended approach could work in practice. It should also assess how the costs of this approach would compare with the costs of its … Read more
Government Response
The government does not provide the requested detailed analysis of the committee's recommended approach or a cost comparison, instead reiterating its stance on existing provisions and rejecting the core recommendations.
Department for Work and Pensions
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15 Recommendation Not Addressed
Third Report: Universal Credit: th…
Terminally ill people already face thousands of pounds of additional costs because of their illness,...
Terminally ill people already face thousands of pounds of additional costs because of their illness, and the money provided by Universal Credit counts more than ever. We welcome the fact that the Department has been reviewing how the Special Rules … Read more
Government Response
The government's response discusses the availability of New Claim Advances and the existing fast-track process for terminally ill claimants, but does not address the recommendation to publish its review of the Special Rules for Terminal Illness by 30 November.
Department for Work and Pensions
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18 Recommendation Not Addressed
Third Report: Universal Credit: th…
Even with starter payments of the kind we have recommended, we anticipate that some claimants...
Even with starter payments of the kind we have recommended, we anticipate that some claimants would still need to ask for an Advance to cover their immediate 80 Universal Credit: the wait for a first payment costs. But some claimants … Read more
Government Response
The government's response discusses explicit consent rules, data protection, and stakeholder engagement, but does not address the recommendation to use requests for substantial advances as an indicator to provide early support to struggling claimants.
Department for Work and Pensions
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20 Recommendation Not Addressed
Third Report: Universal Credit: th…
We recommend that Advances should be renamed “new claim loans”, so that it is clear...
We recommend that Advances should be renamed “new claim loans”, so that it is clear to claimants that they will need to be repaid. Before a new claim loan is granted in full, the Department should provide personalised budgeting support—when … Read more
Government Response
The government's response focuses on publishing data for Work Capability Assessments and a future Health and Disability Green Paper, completely failing to address the recommendation regarding renaming Advances or providing budgeting support.
Department for Work and Pensions
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21 Conclusion Not Addressed
Third Report: Universal Credit: th…
For this group of claimants, the burden of future repayments of Advances is likely to...
For this group of claimants, the burden of future repayments of Advances is likely to be particularly difficult to bear. Given that benefits broadly provide people with a subsistence level of income, any system that reduces that monthly income, including … Read more
Government Response
The government's response discusses Work Capability Assessments and payment timeliness, rather than addressing the committee's concerns about the burden of Advance repayments.
Department for Work and Pensions
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22 Recommendation Not Addressed
Third Report: Universal Credit: th…
The Department should strive to bring in the extension to the repayment period and lowering...
The Department should strive to bring in the extension to the repayment period and lowering of the deduction cap sooner than planned, no later than April 2021— recognising the likely increase in the numbers of claimants over this winter. We … Read more
Government Response
The government's response does not address the recommendation to accelerate the extension of the repayment period, lower the deduction cap to 10%, or bring changes in sooner than planned, instead referring to encouraging HMRC to reduce historic debt.
Department for Work and Pensions
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23 Recommendation Not Addressed
Third Report: Universal Credit: th…
DWP has capped the deductions that claimants can face from their Universal Credit award at...
DWP has capped the deductions that claimants can face from their Universal Credit award at 30%, and yet in some circumstances, such as where a claimant has rent or fuel arrears, or benefit sanctions, DWP can deduct more than this … Read more
Government Response
The government's response discusses encouraging timely claims, the 'Help to Claim' programme, and backdating provisions, but does not address the committee's recommendation regarding deduction caps or using data to help claimants with debt without further reducing their Universal Credit award.
Department for Work and Pensions
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28 Recommendation Not Addressed
Third Report: Universal Credit: th…
DWP was right to increase the standard allowance for Universal Credit and support for housing...
DWP was right to increase the standard allowance for Universal Credit and support for housing costs as part of its response to the pandemic. Benefit rates, and in particular support for housing costs, had become detached from the actual cost … Read more
Government Response
The government's response discusses split payments for couples and managing finances jointly, failing to address the recommendation to maintain Universal Credit and Local Housing Allowance increases.
Department for Work and Pensions
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43 Recommendation Not Addressed
Third Report: Universal Credit: th…
The Universal Credit Transition Fund is an initiative to support vulnerable people in applying for...
The Universal Credit Transition Fund is an initiative to support vulnerable people in applying for Universal Credit as soon as they are eligible, and rightly puts organisations that work most closely with these groups at the centre. Timely applications to … Read more
Government Response
The government states the Universal Credit Transition Fund was suspended due to COVID-19 and highlights other existing funds like the Coronavirus Community Support Fund, Flexible Support Fund, and Help to Claim, without committing to renewing the specific Transition Fund.
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