Universal Credit

(asked on 3rd April 2019) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if her Department will make an estimate of the cost of abolishing the five week wait for universal credit claimants.


Answered by
Alok Sharma Portrait
Alok Sharma
COP26 President (Cabinet Office)
This question was answered on 8th April 2019

The assessment period and payment structure of Universal Credit is integral to the overall design, which requires an assessment period of a month to assess earnings. Universal Credit payments are designed to mirror the world of work, with monthly payments reflecting the way many working people are paid. This model of monthly payments allows claimants to take responsibility for budgeting their own income and helps prepare them for getting back to work. Assessment periods allow for Universal Credit awards to be adjusted on a monthly basis, ensuring that if a claimant’s income falls, they do not have to wait several months for a rise in their Universal Credit award.

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 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. This is just one of a number of measures the Department has put in place to support claimants such as paying those claimants moving from Housing Benefit onto Universal Credit a two week ‘transitional housing payment’. We are also introducing a two-week run on for eligible claimants of Income Support, Jobseeker’s Allowance and Employment and Support Allowance from July 2020.

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