Universal Credit

Baroness Lister of Burtersett Excerpts

Tuesday 2nd June 2020 Lords Chamber

[Baroness Stedman-Scott]

The noble Baroness makes a very good point and I understand where she is coming from, but I must tell her that there are no plans to do as she requests. Bringing forward the October 2021 easement is not something I have heard discussed, but I am happy to go back to the department and find out.

[Baroness Lister of Burtersett (Lab)]

My Lords, according to a recent Resolution Foundation survey, two-fifths of new UC claimants had not asked for an advance because they feared getting into debt—and debt it is, albeit interest-free. Will the Government therefore follow the foundation’s advice and at the very least suspend repayments for some months, following the welcome precedent set with other debt repayments, which shows that it is administratively possible, and if not, why not?

[Baroness Stedman-Scott]

Non-repayable advances cannot be implemented without significant changes to the system; this is not currently our policy intent. Funding to do it would be needed from the Treasury, costing an estimated £2 billion to £2.7 billion. With an advance, there are 13 payments over a year instead of 12, and as of next year the period over which advances have to be repaid will be extended from 12 months to 24 months.