Universal Credit

Baroness Janke Excerpts
Tuesday 2nd June 2020

(3 years, 11 months ago)

Lords Chamber
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Baroness Stedman-Scott Portrait Baroness Stedman-Scott
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Non-repayable advances cannot be implemented without significant changes to the system; this is not currently our policy intent. Funding to do it would be needed from the Treasury, costing an estimated £2 billion to £2.7 billion. With an advance, there are 13 payments over a year instead of 12, and as of next year the period over which advances have to be repaid will be extended from 12 months to 24 months.

Baroness Janke Portrait Baroness Janke (LD)
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People who are suddenly faced with zero income are unable either to wait five weeks for funds or to repay an advance by receiving lower payments, as required by universal credit. Will the Government consider providing an additional dedicated hardship fund via local authorities to provide immediate relief for people in urgent need?

Baroness Stedman-Scott Portrait Baroness Stedman-Scott
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The issue of a local hardship fund has been raised and there is a recommendation for it to be put in place. I am afraid that we will have to wait for the outcome of those deliberations.