Third Report: Universal Credit: the wait for a first payment
Select Committee
Work and Pensions Committee
HC 204
19 October 2020
Government response
Third Special Report - Universal Credit: the wait for a first payment: Government Response to the Committee’s Third Report · published 12 Jan 2021
Recommendations & Conclusions
6 results
27
Recommendation
Accepted
We recommend that vulnerable claimants or claimants with specific needs are prioritised for having the...
Recommendation
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 …
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Government Response Summary
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
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34
Conclusion
Accepted
Para 151
DWP has made substantial progress in improving payment timeliness,.
Conclusion
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 …
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Government Response Summary
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
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40
Recommendation
Accepted
Para 180
We welcome the Minister’s recognition that the Department needs to improve its understanding of the...
Recommendation
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 …
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Government Response Summary
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
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44
Conclusion
Accepted
While monthly payments do mirror the world of work for many, DWP’s own figures show...
Conclusion
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 …
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Government Response Summary
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
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45
Recommendation
Accepted
Para 196
We recommend that the Department provide new and clearer guidance for Work Coaches to mitigate...
Recommendation
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 …
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Government Response Summary
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
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55
Conclusion
Accepted
The five week wait for a first payment of Universal Credit is an inevitable consequence...
Conclusion
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 …
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Government Response Summary
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
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