Universal Credit: DWP ‘doesn’t accept’ highlighted problems with payments – changes coming

Universal Credit can be applied for by most people who are on particularly low incomes or out of work entirely. However, there is usually a five week wait for initial payments to come through and this issue has faced continuous criticism by claimants and public figures alike.

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Stephen Timms, the Chair of the Work and Pensions Select Committee, asked Will Quince for his thoughts on these delayed payments and if the DWP had any plans to change or rectify the rules.

Mr Quince was steadfast in his response: “Where we do have a fundamental difference of opinion with a number of stakeholders, is that we don’t accept that anybody has to wait five weeks for a payment under Universal Credit.

“And that is because Universal Credit is available up to 100 percent of someone’s indicative award as an advance and that’s interest free and repayable over 12 months.

“Also they can have 13 payments over the course of a 12 month period instead of 12.

“In addition to that, we recognise some of the concerns that stakeholders have raised.

“Like for example the initial waiting period and that’s why we removed those initial seven waiting days.

“Plus, when we hear of reports that people are finding it difficult to make repayments we’ve taken action in that regard too.”

Stephen went on to highlight the oncoming changes that the DWP will be making for advance payments, such as plans to reduce maximum deductions in October and the doubling of time that people have to make repayments.

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Under the current rules, Universal Credit claimants can apply for an advance before they get their initial payment.

There are a number of methods for requesting an advance which includes:

  • Speaking with a Jobcentre Plus work coach
  • Applying through an online account
  • Calling the Universal Credit helpline

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Advance payment decisions can be made very quickly and applicants will usually find out if they’ll get it on the same day.

The advance will need to be repaid and deductions will usually be made from future Universal Credit payments but they can also be sought from wages or other benefits the claimant may be getting.

In some cases a claimant can asked for the repayments to be delayed for up to three months if they can’t afford them but this is only allowed in exceptional circumstances.

In severe instances, DWP could get independent debt collection agencies to collect the money on their behalf.

Some claimant’s may have their advance application refused if they do not hit certain eligibility criteria.

An advance may be denied if the claimant:

  • Has not had their identity checked at Jobcentre
  • Has enough money to last until the initial Universal Credit payment
  • Lives with parent, relatives or friends
  • Has aby final earnings or redundancy payments
  • Has any accessible savings

The claimant can ask for these rejection decisions to be reconsidered but they will not have the right to appeal.

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