Recommendations & Conclusions
55 items
1
Conclusion
Third Report: Universal Credit: the wai…
Not Addressed
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 income can push them into crisis.
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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 income can push them into crisis.
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Government response AI 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.
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Department for Work and Pensions
2
Recommendation
Third Report: Universal Credit: the wai…
Rejected
DWP has previously adopted a sceptical attitude towards the evidence linking food bank use with Universal Credit. The Minister has now recognised that the Department needs to do more to improve its understanding of the what causes food bank use to increase. This is a welcome step. The Department has …
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DWP has previously adopted a sceptical attitude towards the evidence linking food bank use with Universal Credit. The Minister has now recognised that the Department needs to do more to improve its understanding of the what causes food bank use to increase. This is a welcome step. The Department has still not published its own analysis of the drivers of foodbank use, which it commissioned in 2018 and which it originally planned to publish in October 2019. We recommend that the Department publish this work without delay.
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Government response AI summary
The government explicitly rejects the recommendation to publish its analysis of foodbank use drivers, stating that due to resource reallocation for the COVID-19 pandemic, it will not be conducting or commissioning any research.
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Department for Work and Pensions
3
Recommendation
Third Report: Universal Credit: the wai…
Not Addressed
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 research to understand these findings better. We would also encourage …
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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 research to understand these findings better. We would also encourage the Trussell Trust to contribute to this work by sharing its data with the Department.
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Government response AI 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.
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Department for Work and Pensions
4
Recommendation
Third Report: Universal Credit: the wai…
Rejected
We also heard evidence which suggests that people on Universal Credit are more likely to have rent arrears than people still claiming legacy benefits. The Department’s own data show that, while some people who come onto Universal Credit have pre-existing rent arrears, the level of these arrears rises much more …
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We also heard evidence which suggests that people on Universal Credit are more likely to have rent arrears than people still claiming legacy benefits. The Department’s own data show that, while some people who come onto Universal Credit have pre-existing rent arrears, the level of these arrears rises much more sharply after they make their claim. Even after a year, they have not fully returned to their pre-claim levels. That too is a worrying finding which deserves investigation by DWP.
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Government response AI summary
The government rejects the recommendation to investigate the link between Universal Credit and rent arrears, citing resource reallocation due to the pandemic and arguing that attributing arrears solely to UC is simplistic.
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Department for Work and Pensions
5
Recommendation
Third Report: Universal Credit: the wai…
Rejected
There is also research which found evidence of an increased prevalence of psychological distress, following the introduction of Universal Credit, among people affected by the policy. The research was not able to delineate whether a change of benefit system in itself—such as moving to Universal Credit—was a driver of the …
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There is also research which found evidence of an increased prevalence of psychological distress, following the introduction of Universal Credit, among people affected by the policy. The research was not able to delineate whether a change of benefit system in itself—such as moving to Universal Credit—was a driver of the rise in psychological distress in the sample of people studied. Further research and evaluation would be needed to understand the drivers behind this rise and its clinical impact. In addition to this, there are wider reports of the impact of the wait for a first payment on claimants’ mental wellbeing. Again, the connection between these findings and the wait for a first payment is not yet clear. But the Department ought to seek to understand this evidence.
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Government response AI summary
The government rejects the implicit recommendation to conduct further research and evaluation to understand the drivers and clinical impact of psychological distress linked to Universal Credit, citing resource reallocation due to the COVID-19 pandemic and outlining other support measures.
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Department for Work and Pensions
6
Recommendation
Third Report: Universal Credit: the wai…
Rejected
DWP should conduct or commission research, before the end of this financial year, to develop its understanding of the impact of Universal Credit, particularly the wait for the first payment, on the rising use of food banks; on claimants’ levels of rent arrears; and on claimants’ mental health and mental …
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DWP should conduct or commission research, before the end of this financial year, to develop its understanding of the impact of Universal Credit, particularly the wait for the first payment, on the rising use of food banks; on claimants’ levels of rent arrears; and on claimants’ mental health and mental wellbeing. While the evidence we heard falls short of establishing a causal link between the wait and these experiences, that is no reason for the Department not to take these findings seriously. It should use them 78 Universal Credit: the wait for a first payment as a starting point for a concerted effort to understand the full impact of the wait for the first payment, and how this may differ for claimants who are moving to Universal Credit from legacy benefits and for those who are making entirely new claims. DWP should more thoroughly consider the evidence linking Universal Credit to increased use of food banks, rent arrears and psychological distress and should use this in its overall strategy for protecting claimants’ safety and wellbeing.
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Government response AI summary
The government rejects the recommendation to conduct or commission research on the impact of Universal Credit and the five-week wait on food bank use, rent arrears, and mental health, citing resource reallocation due to the COVID-19 pandemic and highlighting other support measures.
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Department for Work and Pensions
7
Recommendation
Third Report: Universal Credit: the wai…
Rejected
DWP should publish details of the meetings that it holds with stakeholders, like the Trussell Trust, to ensure that the public and Parliament know that important and well-regarded research, such as that produced by the Trussell Trust, is considered when policy and operational decisions are made. The publication should include …
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DWP should publish details of the meetings that it holds with stakeholders, like the Trussell Trust, to ensure that the public and Parliament know that important and well-regarded research, such as that produced by the Trussell Trust, is considered when policy and operational decisions are made. The publication should include the topics that were discussed and any actions that the Department decided to take following the meeting. (Paragraph 36) Moving to Universal Credit without a change in circumstance
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Government response AI summary
The government states that Ministerial meetings with stakeholders are already published quarterly on GOV.UK but rejects publishing details of every engagement, including topics discussed and actions taken, citing the need to maintain trust and partnership with stakeholders.
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Department for Work and Pensions
8
Conclusion
Third Report: Universal Credit: the wai…
Acknowledged
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 weeks for their first payment of Universal Credit. We see …
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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 weeks for their first payment of Universal Credit. We see no reason why their transition to a new benefits system should not be seamless.
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Government response AI 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.
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Department for Work and Pensions
9
Recommendation
Third Report: Universal Credit: the wai…
Not Addressed
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 a sticking plaster, which costs public money, leaves claimants with …
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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 a sticking plaster, which costs public money, leaves claimants with a gap between payments, and unnecessarily disrupts their budgeting schedules. The delays to the pilot of managed migration give DWP the opportunity to develop something better.
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Government response AI 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.
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Department for Work and Pensions
10
Recommendation
Third Report: Universal Credit: the wai…
Rejected
We recommend that DWP should eliminate the five week wait for all claimants moving to Universal Credit through managed migration, including for claimants moving from tax credits. Those claimants should continue to receive their existing benefits during their first monthly assessment period. They should then be offered the option, from …
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We recommend that DWP should eliminate the five week wait for all claimants moving to Universal Credit through managed migration, including for claimants moving from tax credits. Those claimants should continue to receive their existing benefits during their first monthly assessment period. They should then be offered the option, from day one of their Universal Credit claim, of choosing fortnightly payments of their award. This would ensure a smooth and seamless move from legacy benefits to Universal Credit for people whose circumstances have not changed.
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Government response AI summary
The government rejects eliminating the five-week wait by continuing legacy benefits, citing existing advance payments and run-ons. It also rejects offering fortnightly payments by default, stating that monthly payments prepare claimants for work and Alternative Payment Arrangements are available case-by-case.
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Department for Work and Pensions
11
Recommendation
Third Report: Universal Credit: the wai…
Not Addressed
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 existing plans to pay run-ons and final payments of legacy …
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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 existing plans to pay run-ons and final payments of legacy benefits to claimants who move via managed migration. (Paragraph 56) Starter payments in Universal Credit
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Government response AI 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.
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Department for Work and Pensions
12
Recommendation
Third Report: Universal Credit: the wai…
Rejected
The evidence we received was overwhelmingly in favour of some form of initial, non-repayable payment for new Universal Credit claimants. That would give new claimants the money they need for basic living essentials like food and heating, without requiring them to repay a debt to the Department from their future …
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The evidence we received was overwhelmingly in favour of some form of initial, non-repayable payment for new Universal Credit claimants. That would give new claimants the money they need for basic living essentials like food and heating, without requiring them to repay a debt to the Department from their future Universal Credit payments. We agree that new claimants should receive a form of Universal Credit: the wait for a first payment 79 “starter payment” when they first apply for Universal Credit. But we heard a wide range of proposals for how such payments should work and the level at which they should be set.
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Government response AI summary
The government discusses existing repayable Advances for financial support, the Breathing Space scheme, and increased funding for debt advice, but does not commit to the recommended non-repayable 'starter payment'.
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Department for Work and Pensions
13
Conclusion
Third Report: Universal Credit: the wai…
Rejected
We have considered the various options carefully. In recommending a course of action, we have chosen an approach which offers simplicity: a simple amount of money, so it is clear to claimants what they can expect, and a simple process, which does not require the Department to carry out any …
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We have considered the various options carefully. In recommending a course of action, we have chosen an approach which offers simplicity: a simple amount of money, so it is clear to claimants what they can expect, and a simple process, which does not require the Department to carry out any additional means-testing or assessment of a household’s needs. The benefits of simplicity seem to us to outweigh any possible cost savings offered by more targeted approaches. It would also address the Department’s concerns that targeted grants could risk creating an unfair system with significant disparities of entitlement between claimants.
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Government response AI summary
The government rejects the need for a starter payment, stating that New Claim Advances are already available, and introducing non-repayable advances would increase fraud risk and administrative burden.
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Department for Work and Pensions
14
Recommendation
Third Report: Universal Credit: the wai…
Rejected
We recommend that the Department 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 …
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We recommend that the Department 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. The starter payment should also be given to people who move to Universal Credit by “natural” migration, in cases where it is not possible for them to be moved seamlessly to Universal Credit.
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Government response AI summary
The government rejects the recommendation to pay all first-time Universal Credit claimants a 'starter payment,' stating that New Claim Advances are already available and that non-repayable advances would increase fraud risk, administrative burden, and could lead to inappropriate gains.
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Department for Work and Pensions
15
Recommendation
Third Report: Universal Credit: the wai…
Not Addressed
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 are working, but that review has now lasted for more …
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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 are working, but that review has now lasted for more than a year. We urge the Government to publish its review without further delay, no later than 30 November
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Government response AI 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.
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Department for Work and Pensions
16
Recommendation
Third Report: Universal Credit: the wai…
Rejected
The starter payments we have recommended would also be available to people making claims under the Special Rules for Terminal Illness. We recommend that the Department consider what further support it could offer to people making claims for Universal Credit under the Special Rules for Terminal Illness. That might include …
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The starter payments we have recommended would also be available to people making claims under the Special Rules for Terminal Illness. We recommend that the Department consider what further support it could offer to people making claims for Universal Credit under the Special Rules for Terminal Illness. That might include paying the starter payment more quickly on receipt of a DS1500 form; offering a larger starter payment to people making claims under the Special Rules; or proactively offering backdating (beyond the current limit of a month) of claims to people diagnosed with a terminal illness who have, understandably, not made a claim immediately on becoming eligible. (Paragraph 80) Advance payments
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Government response AI summary
The government rejects the recommendation for further support, including starter payments or enhanced backdating, for terminally ill claimants, stating that existing New Claim Advances negate the need for a starter payment and that UC already has an established fast-track process for these claimants.
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Department for Work and Pensions
17
Conclusion
Third Report: Universal Credit: the wai…
Acknowledged
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 extending the repayment period, are welcome. However, there is clear …
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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 extending the repayment period, are welcome. However, there is clear evidence that Advance repayment deductions still leave some people without enough to live on. This leaves claimants facing a difficult choice: five weeks with no income, or the risk of debt and hardship later.
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Government response AI 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.
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Department for Work and Pensions
18
Recommendation
Third Report: Universal Credit: the wai…
Not Addressed
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 might no longer need to ask for an Advance, and …
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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 might no longer need to ask for an Advance, and others would ask for a much smaller Advance than they currently receive. A request for a substantial Advance in these circumstances would be a clear indication that someone is struggling with the transition to Universal Credit. The Department should use this as an opportunity to support these claimants at the earliest possible stage.
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Government response AI 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.
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Department for Work and Pensions
19
Conclusion
Third Report: Universal Credit: the wai…
Rejected
The Department continues to claim that Advances are not loans, but we find that argument impossible to accept. Advances must be repaid at a set rate, over a set period. The Department risks misleading claimants, and damaging its own credibility, if it insists on denying the obvious fact that Advances …
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The Department continues to claim that Advances are not loans, but we find that argument impossible to accept. Advances must be repaid at a set rate, over a set period. The Department risks misleading claimants, and damaging its own credibility, if it insists on denying the obvious fact that Advances are interest free loans. Unlike firms in the consumer credit sector, where the FCA’s guidance stipulates that repayment rates should be set at levels that are affordable, there is no equivalent body that regulates public sector lending. While Advances can be a vital source of income for new claimants waiting for a first payment, we are concerned that some people find that they are unable to afford repayments later on.
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Government response AI summary
The government explicitly rejects the committee's finding, reiterating that a new claim Advance is not a loan but rather a spreading of UC entitlement. It explains that advances are limited to estimated awards, with support available for budgeting and repayment deferrals for hardship cases.
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Department for Work and Pensions
20
Recommendation
Third Report: Universal Credit: the wai…
Not Addressed
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 possible, with a face-to-face option—with a full assessment of the …
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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 possible, with a face-to-face option—with a full assessment of the claimant’s financial situation and the impact that future repayments of the loan will have on their household finances. We recognise that, for people in acute financial crisis, it may be necessary for the Department to pay part of the loan before this support can be offered.
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Government response AI 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.
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Department for Work and Pensions
21
Conclusion
Third Report: Universal Credit: the wai…
Not Addressed
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 through repaying an advance, is very likely to cause people …
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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 through repaying an advance, is very likely to cause people difficulty. The Department already plans to extend the repayment period for Advances from 12 to 24 months, and to reduce the cap on deductions from an award of Universal Credit to 25% of the Universal Credit Standard Allowance. But even a 25% cap leaves claimants receiving substantially less than a subsistence level of income. And these changes will not happen until October 2021—some three years after they were first announced. The Minister says that he would love to be able to do this sooner, but cannot because of constraints in the Universal Credit build programme: : a clear case of “computer says no”.
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Government response AI 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.
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Department for Work and Pensions
22
Recommendation
Third Report: Universal Credit: the wai…
Not Addressed
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 also recommend that the deduction cap should be reduced further, …
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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 also recommend that the deduction cap should be reduced further, to 10%, in recognition of the fact that deductions are taken from an income already set at subsistence levels. If this acceleration involves deprioritising other planned changes or developments in the build programme, the Department should set out what these are and provide a revised timescale for their introduction.
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Government response AI 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.
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Department for Work and Pensions
23
Recommendation
Third Report: Universal Credit: the wai…
Not Addressed
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 amount. Nick Universal Credit: the wait for a first payment …
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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 amount. Nick Universal Credit: the wait for a first payment 81 Timmins has estimated that almost one in five of claimants see over 30% of their Universal Credit award deducted to pay off debts. DWP should ensure that claimants never face deductions in excess of the usual cap, and should use the data that it has on “last resort” deductions to help claimants tackle their debt problems without reducing their Universal Credit award further.
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Government response AI 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.
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Department for Work and Pensions
24
Recommendation
Third Report: Universal Credit: the wai…
Rejected
The Department says that claimants who are struggling can already defer repayments of their Advance for three months. But the evidence we have heard from charities who work with claimants is that this option is not effectively communicated. Without reliable data on how often it is used, it is impossible …
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The Department says that claimants who are struggling can already defer repayments of their Advance for three months. But the evidence we have heard from charities who work with claimants is that this option is not effectively communicated. Without reliable data on how often it is used, it is impossible to know how well this measure is working in practice. The Department should collect and publish data on how many people have requested a deferral of their Advance repayments, and how many of these requests were granted. It should also ensure that work coaches are proactively informing claimants of this option both at the time of their claim and during the repayment period. This should form part of the personal budgeting support we have recommended.
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Government response AI summary
The government rejects publishing additional specific data on advance repayment deferrals, stating no plans to do so at this point, though it will include general information on advances in its annual report. It does not address the recommendation for work coaches to proactively inform claimants …
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Department for Work and Pensions
25
Recommendation
Third Report: Universal Credit: the wai…
Deferred
We welcome the announcement of the Breathing Space scheme, which is scheduled to be introduced next year, and the Government’s confirmation that Advances in Universal Credit will be covered by the scheme. We find it disappointing, however, that debts in Universal Credit will be “phased in” over time rather than …
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We welcome the announcement of the Breathing Space scheme, which is scheduled to be introduced next year, and the Government’s confirmation that Advances in Universal Credit will be covered by the scheme. We find it disappointing, however, that debts in Universal Credit will be “phased in” over time rather than introduced straight away. We recommend that DWP works with HM Treasury to address any technical barriers in order to ensure that Advances are included in the scheme from its launch, so that Universal Credit claimants can benefit from the support it offers straight away.
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Government response AI summary
The government commits to implementing the Breathing Space scheme for benefit overpayments and legacy benefit advances from May 2021. However, UC Advances and Third Party Deductions in UC will only be included once the full implementation of UC is complete due to system complexities.
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Department for Work and Pensions
26
Recommendation
Third Report: Universal Credit: the wai…
Rejected
Some people in financial distress during the wait for their first payment can face a difficult choice between using their Advance to pay their housing costs, or to cover other essential costs, such as food or heating. No one should find themselves in arrears—or facing eviction—during this time. We recommend …
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Some people in financial distress during the wait for their first payment can face a difficult choice between using their Advance to pay their housing costs, or to cover other essential costs, such as food or heating. No one should find themselves in arrears—or facing eviction—during this time. We recommend that anyone claiming an Advance should be given the option, at the outset, of having the housing element of the Advance paid directly to their landlord. This would ensure that claimants’ housing costs are covered during the wait for their first payment, and that they will not face the risk of falling into arrears or eviction as a result.
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Government response AI summary
The government rejects the recommendation to offer direct payment of the housing element of an Advance to landlords. It states that existing Managed Payments to Landlords are already available and cautions against the potential for landlord pressure if this option were introduced for advances.
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Department for Work and Pensions
27
Recommendation
Third Report: Universal Credit: the wai…
Accepted
We recommend that vulnerable claimants or claimants with specific needs are prioritised for having the housing element of their Advance paid directly to their landlord. This could include people with learning disabilities, people with mental illness, people who have previously been homeless, or people with drug or alcohol addiction. (Paragraph …
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We recommend that vulnerable claimants or claimants with specific needs are prioritised for having the housing element of their Advance paid directly to their landlord. This could include people with learning disabilities, people with mental illness, people who have previously been homeless, or people with drug or alcohol addiction. (Paragraph 115) Increased financial support
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Government response AI summary
The government states that existing provisions, such as Managed Payments to Landlords and a new online service for direct rent payments, already sufficiently address the committee's suggestion. They argue against prioritising advances due to potential risks and highlight specialist budgeting support.
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Department for Work and Pensions
28
Recommendation
Third Report: Universal Credit: the wai…
Not Addressed
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 of living—in particular from the cost of private rents—and people …
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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 of living—in particular from the cost of private rents—and people were struggling to find a home for their family and to meet the costs of basic essentials. The Department should commit to maintaining the increases in support that have been provided during the pandemic. This should include keeping Local Housing Allowance 82 Universal Credit: the wait for a first payment at the 30th percentile and conducting an annual review of rates to ensure they remain appropriate for each area. It should maintain the £20 a week increase in standard allowance for Universal Credit and Working Tax Credit, with annual inflation-based increases thereafter. (Paragraph 122) Support for claimants
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Government response AI 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.
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Department for Work and Pensions
29
Conclusion
Third Report: Universal Credit: the wai…
Acknowledged
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 them to manage debt, personal budgeting, and maintaining their claim …
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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 them to manage debt, personal budgeting, and maintaining their claim through their online journal. In that respect, Help to Claim is still a long way from providing the support originally envisaged as integral to the successful rollout of Universal Credit. We cannot agree with the assertion made by Neil Couling, Senior Responsible Owner for Universal Credit, that the Department is currently providing a “de facto Universal Support”.
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Government response AI 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.
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Department for Work and Pensions
30
Recommendation
Third Report: Universal Credit: the wai…
Rejected
We recommend that the Department invests in expanding and developing Help to Claim so that the service can provide support to people beyond the application process. This should include debt advice, support for people who are struggling with Advance repayments, and tailored support for people with complex needs who need …
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We recommend that the Department invests in expanding and developing Help to Claim so that the service can provide support to people beyond the application process. This should include debt advice, support for people who are struggling with Advance repayments, and tailored support for people with complex needs who need additional support throughout their claim. The service should also offer digital support—for example, supporting people to make use of the online journal to maintain their claim. This would bring Help to Claim closer to the original plans for Universal Support.
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Government response AI summary
The government rejects expanding Help to Claim to directly provide ongoing support like debt advice and digital skills. It states that Help to Claim already signposts claimants to other support services for these needs and defends the current scope of the service.
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Department for Work and Pensions
31
Conclusion
Third Report: Universal Credit: the wai…
Acknowledged
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 note on a file: they do not enable staff to …
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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 note on a file: they do not enable staff to collect consistent data on who needs additional support. We welcome the Minister’s ambition to improve the way the Department identifies people who may need additional support, and his recognition that more needs to be done. We would welcome timely action to address that recognition.
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Government response AI 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.
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Department for Work and Pensions
32
Recommendation
Third Report: Universal Credit: the wai…
Accepted in Part
DWP must immediately make improvements to the Universal Credit system to formalise how it identifies and defines vulnerable claimants, as part of its overall approach to safeguarding vulnerable people. This will be a substantial piece of work, and DWP should set out when it expects to achieve this. The new …
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DWP must immediately make improvements to the Universal Credit system to formalise how it identifies and defines vulnerable claimants, as part of its overall approach to safeguarding vulnerable people. This will be a substantial piece of work, and DWP should set out when it expects to achieve this. The new mechanism should, as the Minister for Welfare Delivery suggested, include the ability to identify vulnerable and disadvantaged groups and specific cohorts of people. DWP should gather data to identify whether any such groups are more likely to experience problems during the wait for first payment, delays to their payment, or any other issues throughout their claim. DWP should proactively use this information to expedite claims for these people, ensuring that they do not face further delay, and to provide the additional support that they need.
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Government response AI summary
The government states it is working on collecting sensitive information to provide tailored support and monitor improvements for specific claimant cohorts, and that vulnerable accounts can already be flagged. However, it does not commit to a formalised system or timeline for defining and identifying vulnerable …
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Department for Work and Pensions
33
Recommendation
Third Report: Universal Credit: the wai…
Acknowledged
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 wait for a first payment 83 of explicit consent. We …
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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 wait for a first payment 83 of explicit consent. We urge the Department to publish more detail about how this exploration is being progressed, including when the Department expects progress to be visible to observers and experienced by claimants. We echo the Social Security Advisory Committee’s recommendation that DWP should consider applying the implicit consent model to Universal Credit, or at least consider what improvements it can make to the model of explicit consent. More broadly, DWP should review its approach to how it works with people and organisations that support claimants, including support workers, housing associations and local authorities. (Paragraph 145) Payment timeliness
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Government response AI 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.
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Department for Work and Pensions
34
Conclusion
Third Report: Universal Credit: the wai…
Accepted
DWP has made substantial progress in improving payment timeliness,. The Department has increased the proportion of people paid on time from just over half in 2017 to over 90% in 2020—a significant feat given the recent upsurge in Universal Credit claims. However, the overall rise in claimant numbers mean that …
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DWP has made substantial progress in improving payment timeliness,. The Department has increased the proportion of people paid on time from just over half in 2017 to over 90% in 2020—a significant feat given the recent upsurge in Universal Credit claims. However, the overall rise in claimant numbers mean that more people than ever are being paid late, and when managed migration begins at scale there is a risk that these numbers will rise. No one should have to wait more than five weeks for their first payment.
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Government response AI summary
The government asserts that no one has to wait five weeks for UC payments, citing advances available from day one and two-week run-ons for legacy benefits. They state that sufficient provision is in place and reject the idea of continuing tax credits with UC or …
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Department for Work and Pensions
35
Recommendation
Third Report: Universal Credit: the wai…
Accepted in Part
We welcome the announcement of funding for the recruitment of over 13,500 new Work Coaches—double the current number—over the next financial year. This is an ambitious programme of recruitment. The Committee would welcome a written update from the Department, by the end of the calendar year, on how the recruitment …
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We welcome the announcement of funding for the recruitment of over 13,500 new Work Coaches—double the current number—over the next financial year. This is an ambitious programme of recruitment. The Committee would welcome a written update from the Department, by the end of the calendar year, on how the recruitment is progressing. This should include, but not be limited to: how many of the new Work Coaches are in post; the Department’s progress in acquiring new estate to accommodate the new staff; and what impact the introduction of new staff has had on payment timeliness. The Department should then provide monthly updates on this to the Committee thereafter. As part of this, the Department should work with local authorities to identify any additional space that Jobcentres can expand into or share with local authorities. Depending on who space is shared with, DWP may find that it is able to offer better support to claimants through improved communication and collaboration.
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Government response AI summary
The government provides an update on Work Coach recruitment and details plans to maximise estates capacity, including using local authority space. However, they reject the request for monthly updates, stating they will provide 'relevant updates to Parliament' instead.
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Department for Work and Pensions
36
Recommendation
Third Report: Universal Credit: the wai…
Deferred
We acknowledge that most disabled people and people with health conditions receive the core elements of their claim on time. However, we find it troubling that, because of the time taken to complete the Work Capability Assessment process, people must wait much longer than five weeks to receive their full …
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We acknowledge that most disabled people and people with health conditions receive the core elements of their claim on time. However, we find it troubling that, because of the time taken to complete the Work Capability Assessment process, people must wait much longer than five weeks to receive their full entitlement. Even beyond this, disabled people experience further delays, waiting on average four months for a WCA decision. Given that disabled or ill claimants face additional costs and challenges during the wait for their first payment, it is vital that people receive their full entitlement as quickly as possible. We have recommended elsewhere in this report that DWP prioritise the changes that are needed to the UC system to allow it to collect data about claimants’ characteristics, including impairment or health condition, in a systematic way. It needs that data to understand fully disabled people’s experience of making a claim for Universal Credit. DWP should investigate how it can speed up the WCA process. Four months, on average, is too long for a person to wait for their full award. In addition, the Department should continue to monitor and collect data on how long the WCA process is taking, and it should fast track any groups for whom data suggests the WCA takes the longest. Notwithstanding 84 Universal Credit: the wait for a first payment delays to the process, 13 weeks is still a long time. Disabled people and people with health conditions should not have to wait this long to receive the disability element of their award. DWP should commit to reducing the time taken to complete the WCA process.
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Government response AI summary
The government defends the current WCA assessment period for thoroughness and fairness, not committing to speeding it up directly. However, they commit to collecting and publishing WCA data and will explore assessment reform options in a forthcoming Health and Disability Green Paper.
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Department for Work and Pensions
37
Recommendation
Third Report: Universal Credit: the wai…
Rejected
The Universal Credit application process requires claimants to provide a great deal of information about their circumstances, to enable the Department to assess their claim. When they have done this, Universal Credit claimants rightly expect that they should be paid the full amount they are entitled to, on time. For …
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The Universal Credit application process requires claimants to provide a great deal of information about their circumstances, to enable the Department to assess their claim. When they have done this, Universal Credit claimants rightly expect that they should be paid the full amount they are entitled to, on time. For too many people, however, this simply does not happen. There is a penalty for claimants who do not provide the necessary documents in time: their Universal Credit is paid late. But there is no equivalent penalty for the Department when it fails to keep its side of the bargain. Where a claimant provides all the information DWP has asked for on time, but DWP has not completed its own processes to verify the claim details and make a timely payment, the claimant should receive the full amount of benefit entitlement for which they are claiming. If the Department subsequently decides that a claimant is entitled to less than they have been receiving, claimants should not be expected to pay anything back to DWP except in clear cases of deliberate fraud. Similarly, where a claimant is expected to complete a Work Capability Assessment to assess how much money they are entitled to, the onus should be on the Department to schedule the assessment and make a decision within the usual initial waiting period for the benefit. If there are delays to the WCA process, through no fault of the claimant, claimants should be paid at the highest rate until their claim has been determined. (Paragraph 159) Tax credit debts
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Government response AI summary
The government rejects the recommendations, stating payment timeliness must be balanced with fraud reduction, and defending the existing WCA process which includes backdating awards if a delay occurs. They do not agree to pay claimants at the highest rate during WCA delays or limit repayments …
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Department for Work and Pensions
38
Conclusion
Third Report: Universal Credit: the wai…
Acknowledged
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, is particularly concerning. Despite HMRC’s assurances that people are routinely …
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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, is particularly concerning. Despite HMRC’s assurances that people are routinely informed of overpayments, the evidence we have heard suggests that there are gaps in how this is being communicated.
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Government response AI 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.
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Department for Work and Pensions
39
Recommendation
Third Report: Universal Credit: the wai…
Rejected
The recovery of Tax Credit debt from claimants’ Universal Credit awards clearly presents problems. However, the option of returning responsibility to HMRC now would be too challenging to deliver in practice. Instead, we recommend that DWP should continue to collect these debts, but that recovery should only begin when the …
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The recovery of Tax Credit debt from claimants’ Universal Credit awards clearly presents problems. However, the option of returning responsibility to HMRC now would be too challenging to deliver in practice. Instead, we recommend that DWP should continue to collect these debts, but that recovery should only begin when the claimant has repaid their Advance (if they have taken one out). Repayments of any remaining debt should be capped at 10% of the Universal Credit standard allowance per month. Debts that have not been pursued for more than 6 years should be written off entirely, in line with the approach taken in the private sector. We also recommend that the FCA’s approach be extended so that it covers public sector debts, including tax credit overpayments and Advances in Universal Credit. This will help ensure that best practice from the private sector is reflected in DWP’s approach to debt. (Paragraph 170) Universal Credit: the wait for a first payment 85 Backdating
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Government response AI summary
The government rejects the recommendation for a 10% cap on debt repayments, stating its 30% cap balances claimant needs with responsible fund administration. It does not address recommendations to delay debt recovery until advances are repaid, write off debts over 6 years, or extend the …
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Department for Work and Pensions
40
Recommendation
Third Report: Universal Credit: the wai…
Accepted
We welcome the Minister’s recognition that the Department needs to improve its understanding of the reasons why so many people claim for Universal Credit long after they become eligible. The Department must prioritise this work so that it can tackle the problem. We recommend that the Department investigate why people …
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We welcome the Minister’s recognition that the Department needs to improve its understanding of the reasons why so many people claim for Universal Credit long after they become eligible. The Department must prioritise this work so that it can tackle the problem. We recommend that the Department investigate why people take time to start a Universal Credit application and publish the results of these findings by the end of the financial year. It should use this analysis to inform its communications with claimants, to encourage people to apply for Universal Credit at the right time.
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Government response AI summary
The government agrees on the importance of timely applications and states that a UC Full Service Omnibus Survey published in February 2019 already investigated reasons for delayed claims, finding that a fifth of claimants delayed due to job seeking or lack of awareness.
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Department for Work and Pensions
41
Recommendation
Third Report: Universal Credit: the wai…
Rejected
Many claimants are simply unaware that they can ask for their claim to be backdated by a month. Even when they do ask for backdating, they sometimes face an intrusive and bureaucratic process. We recommend that the Department review the use of evidence for backdating and works with work coaches …
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Many claimants are simply unaware that they can ask for their claim to be backdated by a month. Even when they do ask for backdating, they sometimes face an intrusive and bureaucratic process. We recommend that the Department review the use of evidence for backdating and works with work coaches to find a way to make the application process less burdensome on claimants. The Department should publish the information that work coaches use to advise claimants on backdating. It should work to increase awareness of the option for backdating from day one of a person’s claim, and of the circumstances in which somebody may be able to see their claim backdated.
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Government response AI summary
The government rejects the recommendation, stating that UC is designed for quick claims at the point of need, and that extending backdating beyond one month could disincentivize this. They do not commit to reviewing evidence use for backdating, publishing work coach information, or increasing awareness.
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Department for Work and Pensions
42
Recommendation
Third Report: Universal Credit: the wai…
Rejected
Currently, backdating is only permitted up to a month before the claim was submitted. Given the seriousness of the life events which might allow the backdating of a claim—bereavement, serious illness, relationship breakdown—this period seems astonishingly short. We recommend that, in specified circumstances, the Department allow backdating to the point …
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Currently, backdating is only permitted up to a month before the claim was submitted. Given the seriousness of the life events which might allow the backdating of a claim—bereavement, serious illness, relationship breakdown—this period seems astonishingly short. We recommend that, in specified circumstances, the Department allow backdating to the point at which the change in someone’s life occurred, rather than strictly a month before.
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Government response AI summary
The government rejects extending the backdating period beyond one month, arguing that it could disincentivize claimants from making their UC claims at the point of need. They reiterate that existing limited provisions and support are available for vulnerable claimants.
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Department for Work and Pensions
43
Recommendation
Third Report: Universal Credit: the wai…
Not Addressed
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 Universal Credit will mitigate the impact of the five-week wait. …
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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 Universal Credit will mitigate the impact of the five-week wait. The disruption created by coronavirus this year has left the future funding of the Fund in some doubt. We recommend that the Department and HM Treasury continue the Universal Credit Transition Fund by renewing its funding for the next financial year. (Paragraph 183) Improving payments
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Government response AI 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.
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Department for Work and Pensions
44
Conclusion
Third Report: Universal Credit: the wai…
Accepted
While monthly payments do mirror the world of work for many, DWP’s own figures show that a significant minority of people who claim Universal Credit received or continue to receive weekly or fortnightly wages. Other sources suggest that a majority of claimants may be paid more frequently than monthly. This …
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While monthly payments do mirror the world of work for many, DWP’s own figures show that a significant minority of people who claim Universal Credit received or continue to receive weekly or fortnightly wages. Other sources suggest that a majority of claimants may be paid more frequently than monthly. This can make it hard for households to budget, particularly if they are already managing debt. At the same time, monthly awards create difficulties for some people in social housing with weekly rent payments, and represent another adjustment for people moving from legacy benefits with weekly payments. The evidence we have heard tells us that the option for more frequent payments would benefit the most vulnerable claimants and would have low cost implications for DWP. (Paragraph 195) 86 Universal Credit: the wait for a first payment
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Government response AI summary
The government acknowledges that claimants can struggle with monthly budgeting but states that Universal Credit already allows for more frequent payments (twice or four times monthly) and that Work Coach guidance already directs offering financial advice and Alternative Payment Arrangements.
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Department for Work and Pensions
45
Recommendation
Third Report: Universal Credit: the wai…
Accepted
We recommend that the Department provide new and clearer guidance for Work Coaches to mitigate the impact of the wait and monthly payment system by making the option of more frequent payments under Alternative Payment Arrangements easy for all claimants in England and Wales to access. This option should be …
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We recommend that the Department provide new and clearer guidance for Work Coaches to mitigate the impact of the wait and monthly payment system by making the option of more frequent payments under Alternative Payment Arrangements easy for all claimants in England and Wales to access. This option should be offered to all claimants, alongside clear information about how the payment process will work. The Department should review how it uses evidence for Alternative Payment Arrangement applications, following reports that it puts people off applying.
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Government response AI summary
The government reiterates that UC is paid monthly by default but more frequent payments (APAs) are available where claimants struggle. They state that existing guidance for Work Coaches already covers offering financial guidance and considering APAs, preferring a tailored, individualised approach over a universal offering.
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Department for Work and Pensions
46
Recommendation
Third Report: Universal Credit: the wai…
Accepted in Part
We recommend that the Department publishes the guidance given to Work Coaches when they advise people on APAs, to improve transparency in the process. The Department should make clear when and how a claimant is made aware of APAs both during their Universal Credit application and once they start receiving …
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We recommend that the Department publishes the guidance given to Work Coaches when they advise people on APAs, to improve transparency in the process. The Department should make clear when and how a claimant is made aware of APAs both during their Universal Credit application and once they start receiving their payments. The Department should publish the rates at which people are unsuccessful in their applications for an Alternative Payment Arrangements, and what reasons the Department might give a claimant if it denies their request for more frequent payments. DWP should also ensure that work coaches are making claimants aware of the option of split payments, where a household’s payment can be divided and paid into two separate accounts.
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Government response AI summary
The government states it has published guidance on APAs and routinely publishes data, but rejects expanding current reporting on unsuccessful applications. It acknowledges providing tailored support for split payments where appropriate but does not agree a broader review is needed.
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Department for Work and Pensions
47
Recommendation
Third Report: Universal Credit: the wai…
Rejected
Universal Credit works best when it mirrors people’s daily lives. Payments which align with people’s rent schedules could make it easier for claimants to budget and plan. We recommend that the Department explain in response to our report whether it is feasible for landlords to tag the tenancy agreement to …
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Universal Credit works best when it mirrors people’s daily lives. Payments which align with people’s rent schedules could make it easier for claimants to budget and plan. We recommend that the Department explain in response to our report whether it is feasible for landlords to tag the tenancy agreement to the claimant’s Universal Credit claim so that payments are made in line with their rent schedule. If this is not possible, the Department should set out what aspects of the design of Universal Credit it would need to adapt to build in this flexibility for claimants.
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Government response AI summary
The government rejects the recommendation to align Universal Credit payments with rent schedules, stating it is not appropriate due to potential difficulties if claimants change address, and highlights an existing payment alignment feature for social landlords.
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Department for Work and Pensions
48
Conclusion
Third Report: Universal Credit: the wai…
Accepted in Part
While Scottish Government data shows a quarter of people revert from More Frequent Payments under Scottish Choices, DWP’s research does not provide a detailed understanding of how the Department monitors how more frequent payments work for people, and what it might to do improve the policy.
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While Scottish Government data shows a quarter of people revert from More Frequent Payments under Scottish Choices, DWP’s research does not provide a detailed understanding of how the Department monitors how more frequent payments work for people, and what it might to do improve the policy.
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Government response AI summary
The government commits to adding the recommendation to publish figures on claimants reverting from twice-monthly payments to its development programme. It also points to existing data on Alternative Payment Arrangements and data published by the Scottish Government.
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Department for Work and Pensions
49
Recommendation
Third Report: Universal Credit: the wai…
Accepted in Part
We recommend that the DWP improve the quality and detail of its published data on alternative payments, by publishing its figures on how many people revert to monthly payments from the twice monthly payment option in England and Wales. DWP should give detail to these figures by publishing analysis on …
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We recommend that the DWP improve the quality and detail of its published data on alternative payments, by publishing its figures on how many people revert to monthly payments from the twice monthly payment option in England and Wales. DWP should give detail to these figures by publishing analysis on why people may revert to monthly payments and demonstrate how it monitors people’s experiences of Scottish Choices or more frequent payments under APAs. It should use this analysis to better advise claimants and to identify possible improvements to the policy. (Paragraph 202) Speeding up payments – shortening the fifth week
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Government response AI summary
The government will add the recommendation to publish figures on how many people revert to monthly payments to its programme for development, and notes the Scottish Government already publishes management information on Scottish Choices.
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Department for Work and Pensions
50
Recommendation
Third Report: Universal Credit: the wai…
Acknowledged
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 of Faster Payments. That will have costs and will require …
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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 of Faster Payments. That will have costs and will require work across multiple bodies, including the Treasury and the banks. We recommend that the Department maintain its target to increase its proportion of Payments permitted by banks, to shorten the fifth week of the Universal Credit: the wait for a first payment 87 Universal Credit process. We urge the Department to set out in more detail its proposed strategy for rolling out Faster Payments, including its expected timings and its plans for engagement with the banking sector, in response to this report. (Paragraph 208) Improving the assessment system
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Government response AI 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.
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Department for Work and Pensions
51
Conclusion
Third Report: Universal Credit: the wai…
Rejected
It is disappointing that suggestions to improve Universal Credit have apparently been thwarted by an IT system which was supposed to be developed in an agile fashion, yet seems to be anything but. It is unfortunate that such a rigid, clunky IT structure was adopted for UC which makes improvements …
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It is disappointing that suggestions to improve Universal Credit have apparently been thwarted by an IT system which was supposed to be developed in an agile fashion, yet seems to be anything but. It is unfortunate that such a rigid, clunky IT structure was adopted for UC which makes improvements required by Ministers and needed by claimants harder to implement, adding greater costs to benefit administration.
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Government response AI summary
The government rejects the committee's characterisation of the Universal Credit IT system as rigid and clunky, instead asserting its agility and strong performance in supporting claimants throughout the pandemic, maintaining high payment timeliness.
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Department for Work and Pensions
52
Recommendation
Third Report: Universal Credit: the wai…
Rejected
The monthly assessment is a core part of design of Universal Credit for the Department and is the guiding reason behind the five-week wait and payment in arrears. Although the Department says that most people in the wider economy are paid monthly, there is evidence that a significant proportion of …
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The monthly assessment is a core part of design of Universal Credit for the Department and is the guiding reason behind the five-week wait and payment in arrears. Although the Department says that most people in the wider economy are paid monthly, there is evidence that a significant proportion of people moving onto Universal Credit were paid weekly or fortnightly in their previous job. Even for people who are paid monthly, the recent High Court and Court of Appeal cases which found against DWP show that a rigid assessment still causes fluctuations for claimants, financially disadvantages people and, in some cases, puts people off applying for more stable work. But changing the monthly assessment period would entail a fundamental rebuilding of the entire Universal Credit system. That is not likely to be feasible in the short or even medium term. In the longer term, we would encourage the Department to consider in detail the proposals that have been made for systems that could more flexibly meet claimants’ needs—especially for people who are not paid monthly.
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Government response AI summary
The government rejects the recommendation to consider more flexible assessment systems, stating that such a system is not easily operationalised due to complexities with fluctuating earnings and multiple income sources, which would cause financial uncertainty and poor customer service.
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Department for Work and Pensions
53
Recommendation
Third Report: Universal Credit: the wai…
Rejected
We recommend that the Department assesses a model in which it estimates people’s daily pay rate from data it already receives from HMRC, as suggested by Ferret Information Systems, and in which it would make payments from day one of the claim with reconciliation in month two. We request that …
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We recommend that the Department assesses a model in which it estimates people’s daily pay rate from data it already receives from HMRC, as suggested by Ferret Information Systems, and in which it would make payments from day one of the claim with reconciliation in month two. We request that the Department share information on what data that it receives from HMRC, including whether it knows how frequently people are paid, and makes clear what parts of its system are and can be automated. (Paragraph 232) Conclusion
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Government response AI summary
The government rejects the proposed model for daily pay rate estimation and day-one payments, explaining it cannot be easily operationalised for claimants with fluctuating or multiple earnings due to reconciliation challenges and potential over/underpayments, but it does detail the data received from HMRC.
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Department for Work and Pensions
54
Conclusion
Third Report: Universal Credit: the wai…
Acknowledged
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. But that strength can also be a weakness. An automated …
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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. But that strength can also be a weakness. An automated process cannot be tailored to the specific circumstances of individuals, whose needs may be complex. In making recommendations in this report, we have aimed to balance the need for Universal Credit to be more flexible to meet the varying needs of new claimants while maintaining, as far as possible, the benefits that automation brings.
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Government response AI 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.
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Department for Work and Pensions
55
Conclusion
Third Report: Universal Credit: the wai…
Accepted
The five week wait for a first payment of Universal Credit is an inevitable consequence of the fixed monthly assessment period. It is very difficult to remove the wait for 88 Universal Credit: the wait for a first payment all claimants without a complete dismantling of the UC system. But …
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The five week wait for a first payment of Universal Credit is an inevitable consequence of the fixed monthly assessment period. It is very difficult to remove the wait for 88 Universal Credit: the wait for a first payment all claimants without a complete dismantling of the UC system. But there is much more that the Government could and should do to mitigate its effects. The measures we have proposed would, taken together, provide vital support for those claimants who need it most. (Paragraph 234) Universal Credit: the wait for a first payment 89
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Government response AI summary
The government states that no one has to wait five weeks for payment because advances are available and have been widely distributed, serving as a crucial support measure.
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Department for Work and Pensions