Recommendation 121

Our colleagues on the Work and Pensions Select Committee recently held an inquiry entitled Universal Credit: the wait for a first payment. They recommended the DWP should: pay all first time claimants of Universal Credit a “starter payment” equivalent to three weeks of the Standard Allowance of Universal Credit. This payment should be made two weeks after the initial claim, and only once the claimant’s identity has been verified, to mitigate the risk of fraud.308 The Work and Pensions Committee said that it had received evidence in its inquiry that was overwhelmingly in favour of an initial non-repayable payment for new Universal Credit claimants. The Committee argued this “starter payment” would ensure claimants would have the money needed for basic living essentials like food and heating.309 The DWP responded to this recommendation saying that the advance payment system already in place means that money is ‘available urgently to claimants if they are in need of financial help’ and that the introduction of non-repayable starter payments would increase fraud risk in the welfare system.310