Question to the Department for Work and Pensions:

To ask Her Majesty's Government what plans they have, if any, to replace Universal Credit Advance Payment loans with grants or 'starter payments' to reduce applicants' accrual of debt during the five-week waiting period.

We have no plans to do this. Our focus remains firmly on ensuring that millions of new and existing claimants continue to receive their payments on time, and that we do everything possible to support people back into work where it is right to do so.

Nobody has to wait for five weeks for a Universal Credit (UC) payment. New Claims Advances are available which allow claimants to receive up to 100 per cent of their estimated UC payment upfront so that new claimants will receive their annual award over 13 payments during their first year, instead of 12. These advances are not loans.

The Department has announced that from October 2021, the maximum recovery period is increasing from 12 to 24 months for new claim and benefit transfer advances and that we are reducing the normal maximum level of deductions from a claimant’s UC Standard Allowance to 25 per cent, down from 30 per cent.