Source · Select Committees · Work and Pensions Committee
Recommendation 10
10
Paragraph: 53
We recommend that DWP should eliminate the five week wait for all claimants moving to...
Recommendation
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.
Paragraph Reference:
53
Government Response
Not Addressed
HM Government
Not Addressed
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 Credits that are moved to UC will be able to claim an Advance of up to 100% of their indicative award. As of 22nd July 2020, a two-week run-on of Income Support, income-related Employment and Support Allowance and income-based Jobseeker’s Allowance is paid to eligible claimants to provide additional support to move to UC. This is in addition to the already established transition to UC housing payment where eligible claimants receive a two-week extension of Housing Benefit. The Department is not considering continuing paying Tax Credits with UC, as there is suitable provision in place to support claimants until they receive their first UC payment. All Working Tax Credits claimants are, by definition, in work, and will have other income to help support them through the transition. This is not necessarily the case for those moving onto UC from ESA or JSA, many of whom are not employed or only working part time. It is worth emphasising that significant proportion of Tax Credit claimants are already paid four-weekly. In-work Child Tax Credit claimants will equally have other income to support them, and those claimants who are not working will benefit from receiving a run-on of the legacy benefits they may be claiming. They will also have access to support through other benefits they receive (e.g. Child Benefit). Work Coaches and Case Managers decide if a More Frequent Payment Alternative Payment Arrangement (APA) is appropriate following discussions with the claimant. These are put in place on a case by case basis. However, many claimants are capable of managing their own finances on a monthly basis, and indeed wish to do so, which is why it is not appropriate to provide an APA by default. Monthly payment of benefit helps prepare households to budget on a monthly basis and eases the transition into monthly paid work. Supporting people back into employment is a fundamental tenet of UC and, therefore, we will not be introducing this choice by default.