Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 24 May 2021 to Question 2925 on Universal Credit: Domestic Abuse, what assessment her Department has made of the effect of turning the universal credit advance from a loan to a grant on the (a) levels of personal debt among universal credit claimants, (b) levels of personal debt among universal credit claimants who are fleeing domestic violence and (c) the cost to the public purse.

Advances are not loans. They are a claimant’s benefit entitlement paid early, allowing claimants to access 100% of their estimated Universal Credit payment upfront. They ensure nobody has to wait for a payment in Universal Credit and those who need it are able to receive financial support as soon as possible. Claimants can receive up to 100% of their estimated Universal Credit award if required, resulting in 25 payments over a 24-month period.

For (a) and (b), no such assessment has been made.

(c) We currently estimate the cost of non-repayable advances to be between £2bn - £2.7bn annually between 2020/21 and 2024/25. Even with a verification check two weeks after a claim has been made, the introduction of non-repayable advances would very likely lead to significantly increased fraud in the welfare system, as well as an administrative burden to carry out the extra verification checks.

We have numerous provisions available to support victims of abuse, for example urgent payments and referrals to expert organisations. We provide a tailored service that recognises those with complex needs at any point throughout their journey and ensures appropriate support is quickly made available: a fundamental principle in the delivery of Universal Credit