Select committee: Work and Pensions Committee

Recommendation 49

Third Report: Universal Credit: the wait for a first payment Published 19 Oct 2020 Paragraph 202 Addressed to Department for Work and Pensions
Recommendation (the committee's words)
We recommend that the DWP improve the quality and detail of its published data on alternative payments, by publishing its figures on how many people revert to monthly payments from the twice monthly payment option in England and Wales. DWP should give detail to these figures by publishing analysis on why people may revert to monthly payments and demonstrate how it monitors people’s experiences of Scottish Choices or more frequent payments under APAs. It should use this analysis to better advise claimants and to identify possible improvements to the policy.

From: Work and Pensions Committee, Third Report: Universal Credit: the wait for a first payment (HC 204), paragraph 202, 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