Universal Credit

Question

At the Budget the Chancellor announced a number of further improvements to Universal Credit which will be delivered over the next few months. This package of measures responds to concerns raised around the first assessment period and the budgeting issues faced by some claimants at the start of their claim.

Since the Chancellor’s budget statement, we are making Universal Credit advances more generous in three key ways. From January 2018 claimants who require support can now get an advance of up to 100 per cent of their estimated monthly entitlement while they wait for their first payment. Effectively, this removes the wait until their first payment altogether, going beyond what has been called for in Parliament and by external commentators.

From January 2018 claimants can pay back their advances over 12 months, instead of the current six month period, making it easier for claimants to manage their finances. From spring 2018 claimants will also be able to apply for their advance online, making it even easier for claimants to receive the support they need.

From February 2018, the seven day waiting period will be removed for all new Universal Credit claimants; this means that no claimant should wait longer than five weeks to receive their first monthly Universal Credit payment.

From April 2018, all claimants already receiving Housing Benefit will receive two weeks’ worth of additional Housing Benefit payments at the beginning of their Universal Credit claim. This is in addition to Universal Credit support for housing costs and will help reduce the issue of rent arrears whilst claimants transition to monthly payments of Universal Credit.

From April 2018, for claimants in temporary accommodation, local authorities will be able to recoup more of their temporary accommodation costs in UC areas directly from DWP, which will allow them to continue to offer valuable support to the most vulnerable.

From December 2017, there will be new guidance so that Private Rented Sector claimants, who already have their Housing Benefit paid directly to landlords, are offered this option when they join Universal Credit, provided the relevant criteria continue to be met.

Throughout rollout, we will ensure that partnership working is fundamental to the successful implementation of Universal Credit. We are exploring with Citizen’s Advice and Citizen’s Advice Scotland the scope for greater collaborative working to help claimants locally as they move to Universal Credit, within the Universal Support framework.

In addition, we must remember that Universal Credit is primarily aimed at supporting those out of work to move into work, and once in work, to progress and increase their earnings. That is why in addition to these measures, the government has allocated £8m over four years to conduct a suite of tests and trials to support development of the evidence about what works to help people progress in work.

This is a comprehensive and wide ranging package which ensures that claimants either receive more or earlier access to their benefits than previously.