Universal Credit
(asked on 27th March 2019) - View Source
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 wait for payment on universal credit on an individual's ability to manage their money.
No claimant has to go five weeks without receiving support, as advances, worth up to 100 per cent of a claimant’s indicative award, are available up front, if there is a need. Advances are paid back over a period of 12 months and in the Autumn Budget 2018, we announced that from October 2021, the payback period for these advances will be extended further, up to 16 months.
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 support our claimants fully at these times, the Department has introduced a number of measures to support claimants before they receive their first Universal Credit award.
Following the Autumn Budget 2017, we have already removed waiting days and are providing an additional 2 weeks of Housing Benefit to eligible claimants to support them when they move to Universal Credit.
From July 2020, we are introducing a two-week run-on for all those on Employment Support allowance, Income Support or Jobseeker’s allowance who move to Universal Credit and their claim for Universal Credit terminates their existing benefit award
On the 1st January 2019, The Money and Pension Service (MAPS) replaced the three existing providers of government-sponsored financial guidance – the Money Advice Service, the Pensions Advisory Service and Pension Wise – which has brought together the provision of debt advice, money guidance and pension guidance for the first time.
The new body delivers free and impartial financial guidance and a more streamlined service to members of the public providing easier access to the information and guidance.