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

8 items
8 Conclusion Third Report: Universal Credit: the wai… Acknowledged

People who are moving to Universal Credit through managed migration are doing so because of...

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 … Read more

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
17 Conclusion Third Report: Universal Credit: the wai… Acknowledged

Advance payments can provide a valuable lifeline to people who might otherwise face going five...

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 … Read more

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
29 Conclusion Third Report: Universal Credit: the wai… Acknowledged

Help to Claim is a hugely valuable service for people who are applying for Universal...

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 … Read more

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
31 Conclusion Third Report: Universal Credit: the wai… Acknowledged

DWP currently lacks a comprehensive system for recording and tracking claimants’ needs.

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 … Read more

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
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...

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 … Read more

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
38 Conclusion Third Report: Universal Credit: the wai… Acknowledged

Repayments of tax credit overpayments can compound hardship for people who may already be struggling.

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 … Read more

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
50 Recommendation Third Report: Universal Credit: the wai… Acknowledged

Faster Payments offer the Department a quick and efficient way to pay claimants.

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 … Read more

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
54 Conclusion Third Report: Universal Credit: the wai… Acknowledged

The coronavirus pandemic has put the Universal Credit system under unprecedented strain.

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 … Read more

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

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…