Source · Select Committees · Scottish Affairs Committee
Recommendation 113
113
Beyond the adequacy of the Universal Credit system we heard further evidence highlighting that there...
Conclusion
Beyond the adequacy of the Universal Credit system we heard further evidence highlighting that there were other issues with how Universal Credit works and that these issues were causing hardship for claimants in Scotland. A particular issue was the five week wait for a first payment of Universal Credit for claimants and the associated advance payment system.
Government Response
Not Addressed
HM Government
Not Addressed
New Claim Advances are the claimant’s benefit paid early, allowing claimants to access up to 100% of their estimated Universal Credit payment upfront. With a Universal Credit Advance, claimants receive an additional Universal Credit payment, which now can result in 25 payments over 2 years, rather than 24. This extension to spreading payments over 2 years was for New Claim Advances or Benefit Transfer Advances issued from 12 April 2021. Advances issued before 12 April 2021, do not have their maximum repayment period extended as claimants agreed to having their 13 UC payments spread across up to 12 months. The introduction of non-repayable advances would increase fraud risk in the benefit system, as well as imposing the administrative burden of extra verification checks. Additionally, people with sufficient earnings or income with little or no entitlement to Universal Credit, could inappropriately gain, by speculatively claiming in order to obtain a non-repayable sum upfront. Furthermore, DWP estimates the costs of non- repayable grants to be between £2.2 and £2.8 billion.