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
12 results
1
Conclusion
Not Addressed
Para 30
The wait for a first payment of Universal Credit is not the only source of...
Conclusion
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 …
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Government Response Summary
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
Para 32
The Trussell Trust’s data, described by the National Audit Office as the best research it...
Recommendation
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 …
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Government Response Summary
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
Para 52
At present, the Government plans to mitigate the impact of the five week wait on...
Recommendation
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 …
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Government Response Summary
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
We recommend that DWP set out, in response to our report, a detailed analysis of...
Recommendation
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 …
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Government Response Summary
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
Terminally ill people already face thousands of pounds of additional costs because of their illness,...
Recommendation
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 …
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Government Response Summary
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
Para 106
Even with starter payments of the kind we have recommended, we anticipate that some claimants...
Recommendation
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 …
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Government Response Summary
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
Para 108
We recommend that Advances should be renamed “new claim loans”, so that it is clear...
Recommendation
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 …
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Government Response Summary
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
Para 109
For this group of claimants, the burden of future repayments of Advances is likely to...
Conclusion
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 …
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Government Response Summary
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
Para 110
The Department should strive to bring in the extension to the repayment period and lowering...
Recommendation
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 …
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Government Response Summary
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
Para 111
DWP has capped the deductions that claimants can face from their Universal Credit award at...
Recommendation
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 …
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Government Response Summary
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
DWP was right to increase the standard allowance for Universal Credit and support for housing...
Recommendation
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 …
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Government Response Summary
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
The Universal Credit Transition Fund is an initiative to support vulnerable people in applying for...
Recommendation
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 …
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Government Response Summary
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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