Recommendations & Conclusions
55 items
1
Conclusion
Third Report: Universal Credit: the wai…
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.
Government response. 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. …
Department for Work and Pensions
2
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. 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. …
Department for Work and Pensions
3
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. Ministers meet stakeholders regularly, and listen carefully to their views and research. As part of the Central Government Corporate Transparency Commitments, these Ministerial meetings with stakeholders, are published on a quarterly basis. This information can be found on GOV. UK …
Department for Work and Pensions
4
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. As ministers have updated the Committee previously, the Department reallocated resources to prioritise its response to the COVID-19 pandemic. The Department will not be conducting nor commissioning any research. This included the introduction of significant measures to support those who …
Department for Work and Pensions
5
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. As ministers have updated the Committee previously, the Department reallocated resources to prioritise its response to the COVID-19 pandemic. The Department will not be conducting nor commissioning any research. This included the introduction of significant measures to support those who …
Department for Work and Pensions
6
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. As ministers have updated the Committee previously, the Department reallocated resources to prioritise its response to the COVID-19 pandemic. The Department will not be conducting nor commissioning any research. This included the introduction of significant measures to support those who …
Department for Work and Pensions
7
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. Ministers meet stakeholders regularly, and listen carefully to their views and research. As part of the Central Government Corporate Transparency Commitments, these Ministerial meetings with stakeholders, are published on a quarterly basis. This information can be found on GOV. UK …
Department for Work and Pensions
8
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. No one has to wait 5 weeks to receive money through UC and advances are available from day 1 of a claim for those who need it, with many claimants receiving funds within 72 hours. Claimants in receipt of Tax …
Department for Work and Pensions
9
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. 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 …
Department for Work and Pensions
10
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. No one has to wait 5 weeks to receive money through UC and advances are available from day 1 of a claim for those who need it, with many claimants receiving funds within 72 hours. Claimants in receipt of Tax …
Department for Work and Pensions
11
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. No one has to wait 5 weeks to receive money through UC and advances are available from day 1 of a claim for those who need it, with many claimants receiving funds within 72 hours. Claimants in receipt of Tax …
Department for Work and Pensions
12
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. 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 UC claimants can benefit from the support it offers straight away. The Department is …
Department for Work and Pensions
13
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. There is not a need for a starter payment in UC as New Claim Advances are available urgently to claimants if they are in need of financial help. As a result, nobody has to wait for a payment in UC. …
Department for Work and Pensions
14
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. There is not a need for a starter payment in UC as New Claim Advances are available urgently to claimants if they are in need of financial help. As a result, nobody has to wait for a payment in UC. …
Department for Work and Pensions
15
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. There is not a need for a starter payment in UC as New Claim Advances are available urgently to claimants if they are in need of financial help. As a result, nobody has to wait for a payment in UC. …
Department for Work and Pensions
16
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. There is not a need for a starter payment in UC as New Claim Advances are available urgently to claimants if they are in need of financial help. As a result, nobody has to wait for a payment in UC. …
Department for Work and Pensions
17
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. A new claim Advance is not a loan. It allows for UC entitlement to be spread over thirteen payments rather than twelve in a year. Use of incorrect terminology in this respect will only serve to dissuade claimants in genuine …
Department for Work and Pensions
18
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. We recognise that a number of organisations have raised concerns as to whether the explicit consent rules are sufficiently flexible. The Department agreed to explore options for improving the process of explicit consent in conjunction with the Social Security Advisory …
Department for Work and Pensions
19
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. A new claim Advance is not a loan. It allows for UC entitlement to be spread over thirteen payments rather than twelve in a year. Use of incorrect terminology in this respect will only serve to dissuade claimants in genuine …
Department for Work and Pensions
20
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. In relation to available data, the Department is committed to collecting, monitoring and publishing data on the Work Capability Assessment (WCA) process. ESA WCA National Statistics are published on a quarterly basis, and the Department is developing data on UC …
Department for Work and Pensions
21
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. 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 …
Department for Work and Pensions
22
Recommendation
Third Report: Universal Credit: the wai…
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, …
Government response. we will continue to encourage HMRC to reduce historic debt.
Department for Work and Pensions
23
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. We agree it is vital claimants start an application at the point of need and would encourage people to check their eligibility online through independent benefit calculators which can be accessed via GOV.UK We published the UC Full Service Omnibus …
Department for Work and Pensions
24
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. The Department has no plans to publish any additional data on advances at this point. However, we will provide information on advances via our 2020/21 Annual report and Accounts, which we aim to publish as normal in June 2021.
Department for Work and Pensions
25
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. The Department is supportive of Breathing Space and we fully recognise the need to ensure people and families with problem debt can access debt advice and identify appropriate debt solutions. To help people in problem debt get their finances back …
Department for Work and Pensions
26
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. The committee should recognise that the housing element of a UC payment may not cover all the cost of the rent incurred. Managed Payments to Landlords (MPtL) are already available on request to any claimant from the start of, or …
Department for Work and Pensions
27
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. The committee should recognise that the housing element of a UC payment may not cover all the cost of the rent incurred. Managed Payments to Landlords (MPtL) are already available on request to any claimant from the start of, or …
Department for Work and Pensions
28
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. We are committed to providing tailored support to all claimants, including through split payments where appropriate. However, we believe that most couples can and want to manage their finances jointly which is why UC is a household benefit. Claims are …
Department for Work and Pensions
29
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. The previous Universal Support offer had met with regular criticism from stakeholders, including the Work and Pensions Select Committee, which described support as inconsistent and “far from Universal”. Help to Claim replaced the previous Universal Support offer in April 2019, …
Department for Work and Pensions
30
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. The previous Universal Support offer had met with regular criticism from stakeholders, including the Work and Pensions Select Committee, which described support as inconsistent and “far from Universal”. Help to Claim replaced the previous Universal Support offer in April 2019, …
Department for Work and Pensions
31
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. Where it is identified, either from our own agents or via referrals from local services, that a claimant can’t make or manage their claim online, staff are able to offer support through other channels or refer to specialist provision. As …
Department for Work and Pensions
32
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. Where it is identified, either from our own agents or via referrals from local services, that a claimant can’t make or manage their claim online, staff are able to offer support through other channels or refer to specialist provision. As …
Department for Work and Pensions
33
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. The Department operates a policy of explicit consent to help reduce the risk of fraud by ensuring that our claimants’ data is kept safe. This is important because the UC system is structured around an online personal account which contains …
Department for Work and Pensions
34
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. No one has to wait 5 weeks to receive money through UC and advances are available from day 1 of a claim for those who need it, with many claimants receiving funds within 72 hours. Claimants in receipt of Tax …
Department for Work and Pensions
35
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. The Department is continually impacting and assessing the service being offered to claimants and we keep staff numbers and estates provision under constant review as part of our response to the impact of COVID-19 on the labour market. The Department …
Department for Work and Pensions
36
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. During the 13-week assessment period, which applies to Employment and Support Allowance (ESA), and the 3-month relevant period which applies to UC, claimants will receive either the assessment rate of ESA, or the standard rate of UC. This period of …
Department for Work and Pensions
37
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. Payment timeliness in UC in ‘normal’ times is already well above the levels in legacy benefits. Where there are opportunities to improve timeliness further, without damaging efforts on verification, we will take them, but ultimately we must continue to take …
Department for Work and Pensions
38
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. We understand the impact that debt can have on the wellbeing of claimants and we endeavour to ensure that the recovery of any overpayment is managed in a way that takes account of the claimant’s individual circumstances. Work Coaches are …
Department for Work and Pensions
39
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. We understand the impact that debt can have on the wellbeing of claimants and we endeavour to ensure that the recovery of any overpayment is managed in a way that takes account of the claimant’s individual circumstances. Work Coaches are …
Department for Work and Pensions
40
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. We agree it is vital claimants start an application at the point of need and would encourage people to check their eligibility online through independent benefit calculators which can be accessed via GOV.UK We published the UC Full Service Omnibus …
Department for Work and Pensions
41
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. UC support has been designed to be as quick and easy as possible for the claimant, replacing the need to contact different government departments with a single application. It simplifies the legacy system by rolling six benefits into one, ensuring …
Department for Work and Pensions
42
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. UC support has been designed to be as quick and easy as possible for the claimant, replacing the need to contact different government departments with a single application. It simplifies the legacy system by rolling six benefits into one, ensuring …
Department for Work and Pensions
43
Recommendation
Third Report: Universal Credit: the wai…
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. …
Government response. As the Committee will be aware, the UC Transition Fund was due to launch in April 2020 to provide vulnerable people with help to navigate the welfare system and move towards work. Following the outbreak of COVID-19, we regrettably had …
Department for Work and Pensions
44
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. UC encourages all claimants to take responsibility for their own financial affairs and helps them to develop the financial capability to do so. Therefore, households are expected to manage their own budgets, unless this risks financial harm to themselves and/or …
Department for Work and Pensions
45
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. UC encourages all claimants to take responsibility for their own financial affairs and helps them to develop the financial capability to do so. Therefore, households are expected to manage their own budgets, unless this risks financial harm to themselves and/or …
Department for Work and Pensions
46
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. The Department has an established commitment to publishing UC guidance papers. The latest deposit to the House of Commons’ Library was on 29th October 2020 and includes ‘Money guidance and Alternative Payment Arrangements’ guidance. APAs can be considered for any …
Department for Work and Pensions
47
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. Changing assessment periods to align with a claimant’s tenancy or rent agreement is not an approach the Department considers appropriate. Claimants could be left in difficulty, if for example, they were to change address and their new landlord had differing …
Department for Work and Pensions
48
Conclusion
Third Report: Universal Credit: the wai…
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.
Government response. The Department already publishes quality information on Alternative Payments Arrangements. Requests from stakeholders to provide additional statistics, to meet their changing needs, are always carefully considered. The Committee’s recommendation to publish figures on how many people revert to monthly payments …
Department for Work and Pensions
49
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. The Department already publishes quality information on Alternative Payments Arrangements. Requests from stakeholders to provide additional statistics, to meet their changing needs, are always carefully considered. The Committee’s recommendation to publish figures on how many people revert to monthly payments …
Department for Work and Pensions
50
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. The Department is already examining how to modernise payment services, through our ‘Future Payments’ programme, which is currently targeted to complete by 2022/23.
Department for Work and Pensions
51
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. The Committee has repeatedly pointed out how well Universal Credit (UC) has performed across the pandemic. We have adapted our processes and practices in an agile way, enabling us to support an unprecedented increase in claimants whilst responding to the …
Department for Work and Pensions
52
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. The proposed system described by the Committee cannot easily be operationalised because, whilst you can conceptualise it for an individual case with regular earnings, you cannot reliably run it where earnings fluctuate (such as in zero hour contracts) or where …
Department for Work and Pensions
53
Recommendation
Third Report: Universal Credit: the wai…
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 …
Government response. The proposed system described by the Committee cannot easily be operationalised because, whilst you can conceptualise it for an individual case with regular earnings, you cannot reliably run it where earnings fluctuate (such as in zero hour contracts) or where …
Department for Work and Pensions
54
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. The Committee has repeatedly pointed out how well Universal Credit (UC) has performed across the pandemic. We have adapted our processes and practices in an agile way, enabling us to support an unprecedented increase in claimants whilst responding to the …
Department for Work and Pensions
55
Conclusion
Third Report: Universal Credit: the wai…
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 …
Government response. No one has to wait five weeks for a payment. Advances – which allow thirteen UC payments to be spread over twelve months - are available for those claimants who require funds urgently, with most people receiving funds within 72 …
Department for Work and Pensions