| answer text |
<p>No one has to wait five weeks for their first payment of Universal Credit. New
claim advances are available to support those in financial need until their first
payment is made. The Department has learnt from where we did not get things right
in the past in the legacy benefit system. Too often, the desire to pay quickly meant
claimants not receiving their correct entitlement as we did not have an appropriate
timeframe to review household circumstances.</p><p> </p><p>Claimants can access up
to 100% of the total expected monthly award, which they can pay back over a period
of up to 12 months. We have announced that from October 2021, the repayment period
for these advances will be extended further, to 16 months. Proposed repayments of
the advance are explained, and all claimants are advised to request a level of advance
which is manageable both now and when considering the repayments required.</p><p>
</p><p>Our Work Coaches gauge claimants’ financial needs from their first interview.
For those who need help with budgeting, we are able to signpost additional support,
for example through the Money and Pensions Service (MaPS), who can help with personal
budgeting and money management through its free helpline, printed guides and digital
guidance.</p><p> </p><p>Alternative Payment Arrangements (APAs), such as a managed
payment to landlord (MPTL), are available to enable the housing costs element to be
paid directly to the landlord if the tenant is likely to have difficulty in managing
their rent payments or is in rent arrears. APAs will only be considered where a lack
of financial capability poses a risk to the claimant, or their family, and the decision
to implement one is assessed on a case by case basis.</p><p> </p><p>Our own analysis
shows that Universal Credit in fact reduces rent arrears, supporting research carried
out by the National Federation of ALMOs which shows over three quarters of their tenants
come onto Universal Credit with pre-existing rent arrears. It also shows that arrears
tend to increase prior to making a claim for Universal Credit, and that Universal
Credit actually appears to be helping to clear arrears over time. We are currently
extending this analysis to include a number of housing providers. It will be published
when completed.</p>
|
|
