THE WAIT for Universal Credit should be slashed to two weeks to prevent massive hardship for poverty-stricken Brits, MPs have demanded.
In a massive win for HOAR’s campaign to make Universal Credit work and slash wait times, a Parliamentary Committee has called for a “starter payment” to be given to claimants within two weeks to stop people falling into spiralling debt problems.
MPs have demanded UC claimants should get a “starter payment” to slash wait times
The proposals are a massive win for HOAR’s campaign to make Universal Credit work and slash wait times.
The Work and Pensions select Committee have proposed the new payment to make sure people who have to claim Universal Credit aren’t left struggling to afford the basics.
Advance payments are already available to people who claim Universal Credit but these have to be repaid out of later payments and can push people into distressing debt problems.
To create a system which doesn’t unfairly hurt poor Brits, new claimants should be given support while they wait for their first Universal Credit payment, MPs have said.
The starter payment should be the equivalent of three weeks of the standard allowances and would cost the Exchequer roughly £1billion by 2021-22.
Experts have warned wait times which can spiral to 12 weeks can leave debt-laden claimants feeling “suicidal”.
The campaign is aimed at boosting Universal Credit and allowing people to keep more of what they earn.
Citizens Advice has warned half the people it helps during the wait for their first benefits payment are unable to keep up with bills, rent and afford essentials.
And the National Audit Office said the prolonged wait makes claimants’ debt and financial difficulties even worse
In a scathing assessment of advance payments, the Committee said they should be renamed “new claim loans” so people requesting them understand they must be paid back.
Committee chairman and Labour MP Stephen Timms said: “There is a growing body of evidence that moving to Universal Credit leaves many reliant on food banks, falling seriously behind with their rent, and even experiencing increased levels of psychological distress.
“The Government’s response is that there is no proof that Universal Credit – and in particular the wait for a first payment – is the direct cause of those difficulties.
So (Department for Work and Pensions) needs to commission research, and quickly, to find out what lies behind these deeply worrying findings.
“Our social security system should not be leaving people without the money they need for food and heating.
“In the meantime, the Government must face up to the fact that its current system of advance loans simply isn’t working.
“They leave people facing the toughest of choices: go without income for at least five weeks, or have repayments subtracted from their future Universal Credit payments – which are already barely enough to get by on.”
The Committee also threw their support behind extending the weekly £20 increase in Universal Credit, brought in during the coronavirus crisis, beyond April next year.
The money available on benefits “had become detached from the real cost of living”, the Committee said.
Last month, Chancellor Rishi Sunak did not say whether the hike to payments would continue.
Children’s charities, food banks, housing organsations and debt advisers all have pleaded with him to think again on reversing the “lifeline”.
A Department for Work and Pensions spokeswoman said: “With Universal Credit no one has to wait five weeks to be paid, as urgent advances are available – since the start of the pandemic more than two million payments have been made to new claimants within days of being requested.
“We have provided £9.3 billion extra welfare support to help those most in need, including up to two-weeks of legacy benefits for those moving to Universal Credit, and have taken steps to ease the burden of debt repayments.”
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