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
8 results
8
Conclusion
Acknowledged
Para 51
People who are moving to Universal Credit through managed migration are doing so because of...
Conclusion
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 …
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Government Response Summary
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
Para 105
Advance payments can provide a valuable lifeline to people who might otherwise face going five...
Conclusion
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 …
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Government Response Summary
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
Para 131
Help to Claim is a hugely valuable service for people who are applying for Universal...
Conclusion
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 …
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Government Response Summary
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
Para 138
DWP currently lacks a comprehensive system for recording and tracking claimants’ needs.
Conclusion
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 …
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Government Response Summary
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
Support organisations have expressed concern that DWP’s approach to data sharing and consent has had...
Recommendation
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 …
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Government Response Summary
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
Para 169
Repayments of tax credit overpayments can compound hardship for people who may already be struggling.
Conclusion
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, …
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Government Response Summary
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
Faster Payments offer the Department a quick and efficient way to pay claimants.
Recommendation
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 …
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Government Response Summary
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
Para 233
The coronavirus pandemic has put the Universal Credit system under unprecedented strain.
Conclusion
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. …
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Government Response Summary
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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