Universal Credit

Baroness Lister of Burtersett Excerpts

Tuesday 19th July 2016 Lords Chamber

Asked by

[Baroness Lister of Burtersett]

To ask Her Majesty’s Government what assessment they have made of the combined impact, to date, of the payment of universal credit monthly in arrears and the seven-day waiting period before it can be claimed.

[The Minister of State, Department for Work and Pensions (Lord Freud) (Con)]

I recognise the concern about impact, especially about arrears, as we discussed last week, but many claimants come to UC with final earnings to support them until their first payment and often find work quickly. Waiting days apply to those most likely to find work and various claimant support initiatives are available, including advances, dedicated work coaches and budgeting support. DWP is keeping a close eye on this area and hopes to publish data later this year.

[Baroness Lister of Burtersett (Lab)]

My Lords, in the survey of council home providers to which my noble friend Lord McKenzie referred last week, 100% of respondents cited the six-week wait for the first UC payment as a key factor in rent arrears. It is also a factor in food bank referrals. Will the Minister now, as a first step, remove the seven-day waiting period, as called for by the National Federation of ALMOS and ARCH, bearing in mind that his department’s data show that lower-paid workers are more likely to be paid weekly and not have savings to fall back on?

[Lord Freud]

I am looking at this area. The figures have to be looked at very carefully to see what they are really showing us. We are looking at a group going to UC who are changing their circumstances. The difference between what happens to them as they go on to housing benefit compared with the legacy benefits is not as great as I initially thought. But I am taking this seriously and I will look at it personally with the department to ensure that we get the right answer.