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 implications are for her policies of the finding in the June 2018 NAO report Rolling Out Universal Credit which questioned her expectation that most claimants would have enough money to manage over the initial waiting period.

Some claimants at the start of their Universal Credit claim an income, such as final earnings, to help them manage until their first payment. However, for Universal Credit claimants not in this position, advance payments have always been available in order to prevent financial hardship.

The Department had previously estimated 49% of Universal Credit claimants would apply for a new claims/benefit transfer advance (what the NAO report refers to as “most claimants not needing support”); however as the NAO report showed the actual figure is 60%. This clearly shows that claimants are being made aware of advances, that our advance system is being utilised and is working, and consequently that people are getting help when they need it.

Personal Budgeting Support (PBS) is also offered to Universal Credit claimants from the outset of their claim. PBS helps claimants as they transition to Universal Credit and adapt to the financial changes that Universal Credit brings. PBS can be online, telephone or face to face support. Face to face support is delivered through local authorities via Universal Support.

We constantly review the working of Universal Credit in line with our test and learn approach, and we have already implemented policy changes to address many of the concerns raised in the report. This includes the package of measures announced at the Autumn Budget 2017, such as making advances of up to 100% of the indicative award available and increasing the repayment period to 12 months, removing the 7 waiting days, providing an additional payment of 2 weeks of Housing Benefit to support claimants when they transition to Universal Credit, and changing how claimants in temporary accommodation receive support for their housing costs. People can claim advances as soon as they make their claim, so no-one needs to experience hardship when claiming Universal Credit or waiting for their first payment.