To ask the Secretary of State for Work and Pensions, what recent assessment she has made of the potential impact of removing the six week wait for new universal credit payments on (a) current and (b) future levels of poverty in (i) Wales, (ii) England, (iii) Scotland and (iv) Northern Ireland.
Answered on
25 January 2022
There are no plans to change the assessment period and payment structure of Universal Credit.
When claimants are paid Universal Credit is determined by the date of entitlement. The first payment is usually made around five weeks after the claim is made. The first calendar month is the initial assessment period. At the end of that period, entitlement for that month is calculated and paid 7 days later. Payments thereafter are made monthly in arrears.
The Universal Credit assessment period and payment structure are fundamental parts of its design. Universal Credit reflects payment patterns in the world of work, where the majority of people are paid monthly. Ensuring similarities between paid employment and receiving benefits eliminates an important barrier which could prevent claimants from adjusting to paid employment.
It is not possible to award a Universal Credit payment as soon as a claim is made as the assessment period must run its course before the award of Universal Credit can be calculated. It is not possible to accurately determine what a claimant’s entitlement will be in the month ahead. This process ensures claimants are paid their correct entitlement and prevents significant overpayments from occurring.
If new claimants need support before their first payment is made, all new claimants can request an advance of their entitlement to support them.
New Claims Advances are available urgently if a claimant needs support during their first assessment period and budgeting support is available for anyone who needs extra help. Advances of up to 100% of potential Universal Credit entitlement are available urgently if a claimant needs support. With an advance, claimants receive an additional Universal Credit payment, resulting in 25 payments over a 24-month period.