Source · Select Committees · Work and Pensions Committee
Recommendation 16
16
The starter payments we have recommended would also be available to people making claims under...
Recommendation
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 paying the starter payment more quickly on receipt of a DS1500 form; offering a larger starter payment to people making claims under the Special Rules; or proactively offering backdating (beyond the current limit of a month) of claims to people diagnosed with a terminal illness who have, understandably, not made a claim immediately on becoming eligible. (Paragraph 80) Advance payments
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.