Universal Credit

(asked on 5th September 2018) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether she plans to reduce waiting times for payments of universal credit to help ensure that tenants do not fall into rent arrears.


Answered by
Lord Sharma Portrait
Lord Sharma
This question was answered on 14th September 2018

Research carried out by the National Federation of ALMOs shows over three quarters of their tenants come onto Universal Credit with pre-existing rent arrears.

Arrears are usually temporary and the majority of claimants do succeed in paying their rent, managing their monthly payments and clearing their arrears over time. However, this year following the Autumn 2017 Budget, we have abolished waiting days and now provide 2 weeks of extra housing support to claimants moving to Universal Credit from Housing Benefit.

The assessment period and payment structure of Universal Credit is integral to the overall design, which requires an assessment period of a month to assess earnings. Support is available in the first assessment period through the system of advances. We have also made changes to improve advances, and they can now be repaid over a course of 12 months and can consist of up to 100 per cent of the indicative monthly award from day one.

Around 80 per cent of new claims are paid in full and on time. In many cases where full payment is not made on time, it is due to unresolved issues such as: claimants not accepting their Claimant Commitment or passing identity checks, or having outstanding verification issues, such as housing costs and self-employed earnings. Whilst their verification is on-going, many claimants receive a part payment for those elements of the claim that have been resolved.

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