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<p>Some claimants at the start of their Universal Credit claim an income, such as
final earnings, to help them manage until their first payment. However, for Universal
Credit claimants not in this position, advance payments have always been available
in order to prevent financial hardship.</p><p> </p><p>The Department had previously
estimated 49% of Universal Credit claimants would apply for a new claims/benefit transfer
advance (what the NAO report refers to as “most claimants not needing support”); however
as the NAO report showed the actual figure is 60%. This clearly shows that claimants
are being made aware of advances, that our advance system is being utilised and is
working, and consequently that people are getting help when they need it.</p><p> </p><p>Personal
Budgeting Support (PBS) is also offered to Universal Credit claimants from the outset
of their claim. PBS helps claimants as they transition to Universal Credit and adapt
to the financial changes that Universal Credit brings. PBS can be online, telephone
or face to face support. Face to face support is delivered through local authorities
via Universal Support.</p><p> </p><p>We constantly review the working of Universal
Credit in line with our test and learn approach, and we have already implemented policy
changes to address many of the concerns raised in the report. This includes the package
of measures announced at the Autumn Budget 2017, such as making advances of up to
100% of the indicative award available and increasing the repayment period to 12 months,
removing the 7 waiting days, providing an additional payment of 2 weeks of Housing
Benefit to support claimants when they transition to Universal Credit, and changing
how claimants in temporary accommodation receive support for their housing costs.
People can claim advances as soon as they make their claim, so no-one needs to experience
hardship when claiming Universal Credit or waiting for their first payment.</p><p>
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