Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment he has made of the potential impact on Debt Management and debt recovery of making advance payments to Universal Credit claimants before the conclusion of their assessment period.
New Claim Advances give customers the option to spread twenty-five Universal Credit payments over twenty-four months, giving them more flexibility over the payments of their Universal Credit award. Advances are not considered a loan so no interest is charged, nor any enforcement action taken, however Advances are recoverable. They are ordinarily repaid through deductions from subsequent Universal Credit awards over an agreed repayment period of up to 24 months. Customers must repay their advances over a maximum period of 24 months.