Written evidence from Rhiannon Hughes [UCW0085]

1. To what extent have the mitigations the Government has introduced so far (e.g. Advance payments) helped to reduce the negative impact of the five week wait for UC claimants?

Advance payments mean people start on Universal Credit in debt. They continue accumulating debt as more money is clawed back from UC accounts for the debts they have accrued during the 5 week wait. People are forced into debt with fuel and they are unable to pay bills while waiting for payments and then unable to clear arrears with the minimal payments that are received. An offering of debt through advance payments does not reduce any negative impact.
 

        - What problems do claimants still experience during the five week wait? Confusion about what is happening. Thinking that the housing allowance payments that come through are part of their personal allowance that is back logged. This means it spent due to lack of clarity.
People see the advance payment as part of the course, getting into debt not suitable solution. Relying on foodbank to feed your family not a suitable solution.

    2. What is the best way of offsetting the impact of the five week wait?

Ending the 5 week wait, have a none repayable fund just as you had the roll on of job seekers allowance for when people started work. Reliance of food banks and pile up of debt does not help anyone into employment.

        - Is it possible to estimate how much this would cost the Department? 

        - Is it possible to estimate any costs or savings to third parties (for example, support organisations)? It would save local authorities significant amounts of money as they would not have to administer and pay for crisis payments for the many people waiting for UC payments.

   3. Are different mitigating options needed for different groups of claimants? Vulnerable groups needing help to manage money, those in debt who should not be forced into further debt,

   4. Are there barriers or potential unintended consequences to removing the five week wait—either for claimants or the Department? How can they be overcome?

2. To what extent have the mitigations the Government has introduced so far (e.g. Advance payments) helped to reduce the negative impact of the five week wait for UC claimants?
   Nil. They have solved the problem of being able to access immediate money but this is not the safety net that the welfare state was created as. It plunges people into ongoing debt and less money in the long term.

        - What problems do claimants still experience during the five week wait? Hunger, not being able to top up fuel, either way an advance payment of £317 is not adeqaute for people. Often people have accumulated debts trying to apply for UC so the advance payment is also spent repaying fuel debts etc.

    2. What is the best way of offsetting the impact of the five week wait? Remove it

        - Is it possible to estimate how much this would cost the Department?

        - Is it possible to estimate any costs or savings to third parties (for example, support organisations)?

Assess how much local authorities spend on funds caused by UC (through hardship payments etc)delays and how much food banks are having to supplement food for people

   3. Are different mitigating options needed for different groups of claimants?
More support and understanding of broader benefit systems such as PIP. During my work in job centres people were discouraged from making claims.

   4. Are there barriers or potential unintended consequences to removing the five week wait—either for claimants or the Department? How can they be overcome? People may be forced to pay sums of money when going into employment, this will mean they start employment in debt.

April 2020