Recommendation 28

DWP was right to increase the standard allowance for Universal Credit and support for housing costs as part of its response to the pandemic. Benefit rates, and in particular support for housing costs, had become detached from the actual cost of living—in particular from the cost of private rents—and people were struggling to find a home for their family and to meet the costs of basic essentials. The Department should commit to maintaining the increases in support that have been provided during the pandemic. This should include keeping Local Housing Allowance 82 Universal Credit: the wait for a first payment at the 30th percentile and conducting an annual review of rates to ensure they remain appropriate for each area. It should maintain the £20 a week increase in standard allowance for Universal Credit and Working Tax Credit, with annual inflation-based increases thereafter. (Paragraph 122) Support for claimants