Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the effect of the five week waiting time for universal credit, and the consequent requirement for claimants without savings to take an advance from her Department, on levels of indebtedness among claimants.

New Claims are often made as a result of a life event such as losing a job or separating from a partner and these events can be associated with financial problems. To ensure that no-one has to experience hardship during their first assessment period the Department has introduced a number of measures to support claimants before they receive their first Universal Credit award. New claimants can apply for a Universal Credit new claim advance if they need financial support. This is an interest free payment of up to 100% of their total expected award and they can have up to 12 months to repay it. In the Autumn Budget 2018, we also announced that from October 2021, the repayment period for these advances will be extended further, to up to 16 months.

Following the Autumn Budget 2017, we have also implemented a comprehensive and wide-ranging package of improvement measures worth £1.5 billion to help claimants as they move over to Universal Credit. This includes removing waiting days, providing an additional 2 weeks of Housing Benefit to eligible claimants to support them when they move to Universal Credit and, increasing the amount and repayment period for Universal Credit new claim and benefit transfer advances.

At the Autumn Budget 2018, we also announced the introduction of a two-week continuation of Income Support and the income related elements of Employment and Support Allowance and Jobseeker’s Allowance from July 2020. This will provide 1.1 million households with further financial support during their first assessment period.