PARLIAMENTARY WRITTEN QUESTION
Universal Credit (13 June 2019)

To ask the Secretary of State for Work and Pensions, if she will provide universal credit claimants (a) with payments rather than advance payment loans and (b) with those payments earlier than five weeks to ensure that they do not fall into rent arrears.

Asked by:
Chris Elmore (Labour)

Universal Credit payments are designed to mirror the world of work, with monthly payments reflecting the way many working people are paid. This model of monthly payments allows claimants to take responsibility for budgeting their own income and helps prepare them for getting back to work.

Advance payments of Universal Credit are not loans. They are Universal Credit paid early, which is then recovered over an agreed period via deductions from the claimant’s Universal Credit award. No claimant has to go five weeks without receiving support, as advances, worth up to 100 per cent of a claimant’s indicative award, are available up front, if there is need. Advances are paid back over a period of 12 months and in the Autumn Budget 2018, we announced that from October 2021, the payback period for these advances will be extended further, up to 16 months. This is just one of a number of measures the Department has put in place to support claimants such as paying those claimants moving from Housing Benefit onto Universal Credit a two week ‘transitional housing payment’. We are also introducing a two-week run on for eligible claimants of Income Support, Jobseeker’s Allowance and Employment and Support Allowance from July 2020.

Answered by:
Lord Sharma (Conservative)
21 June 2019