William Eichler 19 October 2020

MPs call for ‘starter payment’ to support new UC claimants

A starter payment should be made to people claiming Universal Credit (UC) for the first time to ensure that they have enough money for the basics, MPs say.

A new report on Universal Credit from the Work and Pensions Committee has found that the current wait of at least five weeks causes difficulties for some households.

While the existing system of Advance payments for those in need can provide a financial lifeline, the committee warns that some people are unable to afford the required repayments.

The report, entitled Universal Credit: the wait for a first payment, says that people are being forced into a position where they have to choose between going five weeks with no income or taking on debt for later.

It concludes that the introduction of a new payment - equivalent to three weeks of the standard allowance - would be a simple way of ensuring that new claimants had the money they needed for basic living essentials.

‘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,’ said Stephen Timms, chair of the Work and Pensions Committee.

‘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 DWP 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.’

‘We cannot understand why people who are already claiming benefits need to wait for at least five weeks when they move to Universal Credit - especially when nothing in their lives has changed. Their move should be seamless,’ he continued.

‘For people claiming benefits for the first time, or people who've faced a significant change in their circumstances, the Government should provide starter payments. Doing so would both cut down on the need for Advance loans and ensure that nobody is forced into debt just to be able to afford to eat and keep a roof over their heads.’

A DWP spokesperson 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 £9.3bn 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.'

SIGN UP
For your free daily news bulletin
Highways jobs

Family Support Worker

Durham County Council
Grade 6 - £27,269 - £30,060 (Pay award pending)
Do you have a real passion for helping families to make positive changes for themselves and their children? This might be the right role for you!   WH Durham
Recuriter: Durham County Council

Clerical Officer Receptionist

Durham County Council
Grade 3 £24,404 - £25,183 Pro Rata to hours worked Pay award pending
WHAT IS INVOLVED? We are looking to appoint a part time Clerical officer/Receptionist within Business Services to provide a professional, effective a Durham
Recuriter: Durham County Council

Administration Assistant

Durham County Council
£25,584 - £27,711 pro rata
Administration Assistant Grade 5    £25,584 - £27,711 pro rata Temporary – required from 1st October 2025 until 31 December 2025 37 hours per week, Te Consett
Recuriter: Durham County Council

Support Assistant

Durham County Council
£24,027 pro rata
Support Assistant Grade 1 £24,027 pro rata Temporary – required from 1st October 2025 until 31st October 2026 Part Time, 32.5 hours Mon - Fri 9am -4pm Consett
Recuriter: Durham County Council

Lecturer in Foundation Learning -Maths, English and Digital

Durham County Council
Grade 9 £34,314 - £37,938 pro rata for part-time term time working PAY AWARD PENDING
The DurhamLearn Foundation Learning programme area delivers Digital Skills, English and Maths Functional Skills.   An opportunity has arisen for a Lec Durham
Recuriter: Durham County Council
Linkedin Banner