Universal Credit

(asked on 27th June 2019) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of giving universal credit claimants the option of monthly payments or four weekly payments.


Answered by
Alok Sharma Portrait
Alok Sharma
COP26 President (Cabinet Office)
This question was answered on 5th July 2019

The amount of Universal Credit paid to claimants reflects, as closely as possible, the actual circumstances of a household during each monthly assessment period.

Monthly assessment periods align to the way the majority of employees are paid and how utility companies and other service providers collect payments. It also allows Universal Credit to be adjusted each month, this means that if a claimant’s income falls, they will not have to wait several months for a rise in their Universal Credit.

We have recently reviewed and updated guidance to help ensure claimants, staff and representatives are aware of the importance of employers reporting accurate dates and the impact on payment cycles.

We know that some people find managing their money challenging and Alternative Payment Arrangements (APA) can be provided to help them manage that change. These include: managed payment of the Universal Credit housing cost to landlords; making payments more frequently; and splitting the payment between partners within the household.

APAs can be requested by a claimant at any point during their claim and are considered on a case by case basis and assessed by Universal Credit staff. Staff work closely with claimants and are trained to gauge a claimant’s financial needs at their initial interview, and throughout their claim, based on their personal circumstances.

We continuously review Universal Credit using feedback from claimants and stakeholders. We are currently trialling new ways of working around more frequent payments, monitoring the outcomes to further inform improvements to the service.

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