Source · Select Committees · Scottish Affairs Committee
Recommendation 119
119
Again, the UK Government provides an example on their website: • Your first estimated payment...
Conclusion
Again, the UK Government provides an example on their website: • Your first estimated payment is £344 and you get £344 as an advance. 291 Department for Work and Pensions, Universal Credit: How you’re paid, accessed 14 April 2021 292 Q46 293 Q115 294 The Trussell Trust (WPS0006) 295 The Poverty Alliance (WPS0018) 296 The Poverty Alliance (WPS0018) 297 Citizens Advice Scotland (WPS0014) 298 Citizens Advice Scotland (WPS0014) 299 Department for Work and Pensions, Universal Credit: Get an advance on your first payment, accessed 14 April 2021 300 Q196 301 HM Treasury, Budget 2021, accessed 23 April 2021 Welfare policy in Scotland 45 • You choose to pay back your advance over 24 months, which is £14.33 per month. You’ll get £329.67 on your first payment date - this is your first payment minus the bit you’re repaying (£344 minus £14.33).302
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.