Source · Select Committees · Work and Pensions Committee
Recommendation 13
13
Paragraph: 67
We have considered the various options carefully.
Conclusion
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.
Paragraph Reference:
67
Government Response
Not Addressed
HM Government
Not Addressed
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. Claimants who require an Advance will have their UC award spread across thirteen payments in a year rather than twelve. From October 2021, we will give claimants the option to spread twenty-five payments over twenty-four months. Even with a verification check two weeks after a claim has been made, the introduction of non-repayable advances would increase fraud risk in the welfare system, as well as imposing the administrative burden of extra verification checks. Additionally, people with sufficient earnings or income with little or no entitlement to UC, could inappropriately gain, by speculatively claiming in order to obtain a non-repayable sum upfront. UC already has an established fast track process for terminally ill claimants. This means, that on receipt of a valid DS1500 into the Department, a claimant with UC entitlement may be determined as having Limited Capability for Work and Work Related Activity (LCWRA) without any requirement to refer the case for a Work Capability Assessment. It also means the LCWRA additional amount is awarded from day 1 of the UC claim.