Source · Select Committees · Work and Pensions Committee
Recommendation 44
44
While monthly payments do mirror the world of work for many, DWP’s own figures show...
Conclusion
While monthly payments do mirror the world of work for many, DWP’s own figures show that a significant minority of people who claim Universal Credit received or continue to receive weekly or fortnightly wages. Other sources suggest that a majority of claimants may be paid more frequently than monthly. This can make it hard for households to budget, particularly if they are already managing debt. At the same time, monthly awards create difficulties for some people in social housing with weekly rent payments, and represent another adjustment for people moving from legacy benefits with weekly payments. The evidence we have heard tells us that the option for more frequent payments would benefit the most vulnerable claimants and would have low cost implications for DWP. (Paragraph 195) 86 Universal Credit: the wait for a first payment
Government Response
Not Addressed
HM Government
Not Addressed
UC encourages all claimants to take responsibility for their own financial affairs and helps them to develop the financial capability to do so. Therefore, households are expected to manage their own budgets, unless this risks financial harm to themselves and/or their family. By default, as the Committee knows, UC is paid monthly, mirroring how the majority of the working population are paid. However, where it is identified that a claimant is finding it difficult to budget monthly, they can have their UC paid more frequently, for example: twice monthly or, exceptionally, four times a month. Our guidance to Work Coaches is already clear that where claimants may struggle with budgeting or debt, financial guidance and/or debt advice should be offered, and APAs should be considered. Each claimant will have a named Work Coach with whom a trusted relationship can be forged. This localised approach allows for appropriate support, which can be delivered by the Department or its partners, to be tailored to the needs of the individual claimant.