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Select Committee · Work and Pensions Committee

Universal Credit: the wait for a first payment

Status: Closed Opened: 9 Mar 2020 Closed: 2 Feb 2022 40 recommendations 15 conclusions 1 report

This inquiry looked at the five week wait that faces new Universal Credit claimants before receiving their first benefits payment. It examined the options that the Department for Work and Pensions could consider for reducing or ending the wait and explore other possible solutions. Read the call for evidence to find out more about the … Show more

Clear

Reports

1 report
Title HC No. Published Items Response
Third Report: Universal Credit: the wait for a first payment HC 204 19 Oct 2020 55 Responded

Recommendations & Conclusions

6 items
27 Recommendation Third Report: Universal Credit: the wai… Accepted

We recommend that vulnerable claimants or claimants with specific needs are prioritised for having the...

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 … Read more

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
34 Conclusion Third Report: Universal Credit: the wai… Accepted

DWP has made substantial progress in improving payment timeliness,.

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 … Read more

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
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...

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 … Read more

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
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...

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 … Read more

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...

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 … Read more

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
55 Conclusion Third Report: Universal Credit: the wai… Accepted

The five week wait for a first payment of Universal Credit is an inevitable consequence...

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 … Read more

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

Oral evidence sessions

6 sessions
Date Witnesses
2 Sep 2020 Gareth Davies · Department for Transport, Jonathan Davidson · Financial Conduct Authority, Joshua Reddaway · National Audit Office, Nisha Arora · Financial Conduct Authority View ↗
15 Jul 2020 Neil Couling · Department for Work and Pensions, Will Quince MP · Department for Education View ↗
1 Jul 2020 Gareth Morgan · Ferret Information Systems, Phil Booth · medConfidential, Rt Hon Sir Iain Duncan Smith MP · Department for Work and Pensions, Stephen Brien · Department for Work and Pensions, The Baroness Stroud · Department for Work and Pensions, Tom Loosemore · Public Digital View ↗
24 Jun 2020 Adam Smith · Kent County Council, Hugh Owen · Riverside Housing Group, Jacqueline Hickmore · Cornwall Housing, Jeremy Hewer · Scottish Federation of Housing Associations, Laura Courtney · Community Housing Cymru, Muhammed Butt · London Councils, Noel Duke · Harrogate Borough Council, Sheila McKandie · Highland Council, Sue Ramsden · National Housing Federation View ↗
17 Jun 2020 Anvar Sarygulov · Bright Blue, Ben Fell · Policy in Practice, Dr Mandy Cheetham · Teesside University, Dr Sophie Wickham · Department of Public Health, Policy & Systems, University of Liverpool, Mike Brewer · Resolution Foundation, Nicholas Timmins · Institute for Government, Patrick Spencer · Centre for Social Justice View ↗
10 Jun 2020 Emma Revie · Trussell Trust, Gemma Hope · Leonard Cheshire, Iain Porter · Joseph Rowntree Foundation, Jennifer Harrison · Changing Lives, Mark Gale · Young Women's Trust, Minesh Patel · Mind, Peter Tutton · StepChange, Tom Lee · Child Poverty Action Group View ↗

Who gave evidence

36 witnesses
WitnessOrganisationSessions
Adam Smith · Benefits Coordinator Kent County Council 1
Anvar Sarygulov · Senior Research Fellow Bright Blue 1
Ben Fell · Head of Analysis Policy in Practice 1
Dr Mandy Cheetham · Postdoctoral research associate Teesside University 1
Dr Sophie Wickham · Wellcome Trust Research Fellow Department of Public Health, Policy & Systems, University of Liverpool 1
Emma Revie · Chief Executive Trussell Trust 1
Gareth Davies · Second Permanent Secretary Department for Transport 1
Gareth Morgan · CEO Ferret Information Systems 1
Gemma Hope · Director of Policy Leonard Cheshire 1
Hugh Owen · Director of Strategy and Public Affairs Riverside Housing Group 1
Iain Porter · Senior Policy Adviser Joseph Rowntree Foundation 1
Jacqueline Hickmore · Inclusion Advisor Team Leader Cornwall Housing 1
Jennifer Harrison · Head of Policy and Public Affairs Changing Lives 1
Jeremy Hewer · Policy Lead Scottish Federation of Housing Associations 1
Jonathan Davidson · Executive Director of Supervision – Retail and Au… Financial Conduct Authority 1
Joshua Reddaway · Director National Audit Office 1
Laura Courtney · Policy and External Affairs Manager Community Housing Cymru 1
Mark Gale · Policy and Campaigns Manager Young Women's Trust 1
Mike Brewer · Deputy Chief Executive Resolution Foundation 1
Minesh Patel · Associate Director of Policy and Influencing Mind 1
Muhammed Butt · Executive Member for Welfare, Inclusion and Empow… London Councils 1
Neil Couling · Director General Change and Resilience, and Unive… Department for Work and Pensions 1
Nicholas Timmins · Senior Fellow Institute for Government 1
Nisha Arora · Director of Consumer and Retail Policy Financial Conduct Authority 1
Noel Duke · Neighbourhood Services Manager Harrogate Borough Council 1
Patrick Spencer · Head of Work and Welfare Centre for Social Justice 1
Peter Tutton · Head of Policy, Research and Public Affairs StepChange 1
Phil Booth · Coordinator medConfidential 1
Rt Hon Sir Iain Duncan Smith MP · Former Secretary of State Department for Work and Pensions 1
Sheila McKandie · Interim Head of Revenues and Customer Services Highland Council 1
Stephen Brien · former Expert Adviser Department for Work and Pensions 1
Sue Ramsden · Policy Leader National Housing Federation 1
The Baroness Stroud · former Special Adviser to the Secretary of State … Department for Work and Pensions 1
Tom Lee · Senior Policy Analyst Child Poverty Action Group 1
Tom Loosemore · Partner Public Digital 1
Will Quince MP · Minister for Children and Families Department for Education 1

Correspondence

7 letters
DateDirectionTitle
16 Jul 2021 — Correspondence with Minister for Welfare Delivery - joint meeting with House of…
24 Sep 2020 — Correspondence from NAO about net recovery rate of fraud and error on Universal…
11 Sep 2020 — Correspondence with Minister for Welfare Delivery on Universal Credit: the wait…
11 Sep 2020 — Correspondence with Financial Secretary to the Treasury on the impact of tax cr…
11 Sep 2020 — Correspondence with the National Audit Office (NAO) on analysis of rent arrears…
28 Aug 2020 — Correspondence with the Financial Conduct Authority about best practice in the …
27 Apr 2020 — Correspondence with the Minister for Welfare Delivery about first payments of U…