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 potential merits of introducing non-repayable grants upon qualification for universal credit, while maintaining the option of advance payments prior to qualification, to reduce the wait for a claimant’s first payment of universal credit.

No-one has to wait for a payment under Universal Credit (UC).

UC offers tailored financial support which dynamically adapts following each monthly assessment period, reflecting actual household circumstances. A non-repayable advance, or grant, would provide assistance to those in no immediate financial need and may encourage inappropriate or fraudulent claims to UC.

The current system of advances allows new claimants to request additional support during their first assessment period where needed. Advances can be repaid over a year, allowing new claimants to receive 13 payments during that period instead of 12. Budgeting support is available for anyone who needs extra help managing their finances.

In the year prior to the outbreak of COVID-19, around 55-60 per cent of new claims took up an advance. Subject to some fluctuation, this rate of advance take-up has been broadly consistent over the last 12 months.