Select committee: Work and Pensions Committee

Recommendation 37

Third Report: Universal Credit: the wait for a first payment Published 19 Oct 2020 Paragraph 159 Addressed to Department for Work and Pensions
Recommendation (the committee's words)
The Universal Credit application process requires claimants to provide a great deal of information about their circumstances, to enable the Department to assess their claim. When they have done this, Universal Credit claimants rightly expect that they should be paid the full amount they are entitled to, on time. For too many people, however, this simply does not happen. There is a penalty for claimants who do not provide the necessary documents in time: their Universal Credit is paid late. But there is no equivalent penalty for the Department when it fails to keep its side of the bargain. Where a claimant provides all the information DWP has asked for on time, but DWP has not completed its own processes to verify the claim details and make a timely payment, the claimant should receive the full amount of benefit entitlement for which they are claiming. If the Department subsequently decides that a claimant is entitled to less than they have been receiving, claimants should not be expected to pay anything back to DWP except in clear cases of deliberate fraud. Similarly, where a claimant is expected to complete a Work Capability Assessment to assess how much money they are entitled to, the onus should be on the Department to schedule the assessment and make a decision within the usual initial waiting period for the benefit. If there are delays to the WCA process, through no fault of the claimant, claimants should be paid at the highest rate until their claim has been determined.

From: Work and Pensions Committee, Third Report: Universal Credit: the wait for a first payment (HC 204), paragraph 159, 19 October 2020

Government response

The government responded to the whole report on 12 January 2021 (deadline 19 December 2020).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government notes the Committee's report and, in the sections summarised here, declines to adopt most of its main recommendations, saying that advances mean "No one has to wait five weeks for a payment".

  • On research into the impact of the wait, the Department states that it "will not be conducting nor commissioning any research", saying resources were reallocated to the COVID-19 response.
  • On a starter payment, the Government says there "is not a need for a starter payment in UC" because New Claim Advances are available, and cites increased fraud risk. It says it will "not be introducing" more frequent payments by default.
  • On the deduction cap, it points to the lowering from 30% to 25% of the standard allowance, "effective from October 2021", and says further lowering "would not be an effective way to protect vulnerable claimants".
  • It states that it "does not agree that monthly updates" on Work Coach recruitment are appropriate, but will ensure "relevant updates" are supplied to Parliament. It also reports a commitment to increase Work Coaches by 13,500 by end of March 2021.

Read the government's response ↗ Report an error