Benefits claimants ‘will have to wait four weeks instead of six to get Universal Credit’ in Government U-turn
THE SIX-WEEK wait for Universal Credit claimants will be slashed after concerns it was driving people into poverty, it was claimed today.
People applying to claim the new benefit will have to wait no more than four weeks under a plan set reportedly to be announced in next week’s Budget.
The news was welcomed by Tory rebels who have been pressuring Theresa May to make the policy more generous.
Universal Credit replaces six other types of benefit including jobseeker’s allowance and housing credit.
The scheme – currently being rolled out to all benefits claimants – is meant to make the welfare system easier to understand and encourage the jobless to return to work.
But it has been heavily criticised because new claimants are routinely forced to wait six weeks to get their first payment, forcing many to fall behind on their rent and other essential bills.
Last month a committee of MPs called for the six-week delay to be cut, warning that it would bring a “Christmas disaster” for poorer families.
that Philip Hammond will announce the wait will be reduced to four weeks, making Universal Credit more like a normal pay packet.
The move – likely to be announced in the Budget next Wednesday – will cost the Treasury hundreds of millions of pounds.
Conservative backbenchers have been repeatedly lobbying the Prime Minister and Chancellor over the issue, arguing that the problems with Universal Credit are driving voters into the arms of Jeremy Corbyn.
Tory MP Johnny Mercer today hailed the U-turn as “good news”, adding: “Get the implementation of Universal Credit right – will be one of the best poverty fighting tools we have.”
Stephen Kerr, one of the new Scottish Tories, said: “Great to see the Government listening to concerns from my fellow MPs and I, and being willing to adjust.”
Sources from the Department of Work and Pensions insisted that the report was only “speculation” and suggested that if the waiting time is cut, it may go down to five weeks instead of four.
Employment minister Damian Hinds said today: “I won’t be commenting on Budget speculation but we have made clear that no one has to wait for six weeks before they get their first full payment because they can get an advance which is interest-free and recovered over six months.
“We have always said that we are continually looking to improve the system and the bottom line is that Universal Credit is working and getting more people into work.”
This week, The Sun revealed that Brits have spent £6.5million ringing the Universal Credit hotline to ask for advice about their benefits over the past five months.
Another reform to the programme being pushed by some critics is for it to be paid twice a month, as it already is in Scotland.
Shadow work and pensions secretary Debbie Abrahams said today: “The Government is reportedly planning to reduce the six week wait for Universal Credit payments. I hope they have now listened to Labour’s repeated calls to significantly reduce the waiting time, which has driven many into debt, arrears and evictions.
“Much more needs to be done. The Government must confirm that alternative payment arrangements will be offered to all recipients, including fortnightly payments, and bring forward plans to restore the principle that work always pays under the programme.”
