Advance cash payments to be paid to families claiming Universal Credit to stop them falling into debt

FAMILIES struggling to pay their bills will be able to get advance cash payments to stop them falling into debt.

Universal Credit is a new benefit that is currently being rolled out across the UK.

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The aim of Universal Credit is to simplify the welfare system by replacing different benefits like jobseeker's allowance or housing benefit with a single monthly payment.

According to the Government, three million families will benefit by hundreds of pounds a year under new system.

But Universal Credit has been criticised for lengthy delays, with a third of families having to wait six weeks for their first instalments.

Now Work and Pensions Secretary David Gauke tried to allay these concerns by confirming some people will be able to get cash advances upfront.

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Here's what you need to know:

How will the fast track payments work?

Claimants will now be able to get some cash within five days or on the same day they make a claim in emergency cases - rather than waiting at least six weeks for their first Universal Credit payment.

According to Citizens Advice, you should ask for it if you don’t think you’ll have enough money to live on between when you apply and when you’ll get your first payment.

Don't forget the advance payment is a loan, which means you’ll eventually have to pay it back.

The repayments will be automatically deducted from your Universal Credit payments after you've taken the loan.

It is worth noting that advanced payments have always been a part of the Universal Credit system but many families claimed they were not aware of them.

Mr Gauke said he is now determined to ensure that those who need support earlier in the month will get it.

"I can announce today that we are refreshing the guidance to DWP staff to ensure that anyone who needs an advance payment will be offered it up-front.

"Claimants who want an advance payment will not have to wait six weeks. They will receive this advance within five working days. And if someone is in immediate need, then we fast track the payment, meaning they will receive it on the same day."

He added  that its rollout to more JobCentres across the country would continue on the present timetable, and will be fully implemented by 2022.

Is the policy enough?

Citizens Advice has helped people with over 100,000 issues with Universal Credit, and in August the equivalent of 12 per cent of people applying for the benefit turned to the charity for help.

Its chief executive Gillian Guy welcomed the minister's announcement to introduce refresh guidance but added "we are disappointed he has not taken this opportunity to pause the rollout to ensure the problems are fixed before it speeds up significantly."

ALL CHANGE What is Universal Credit, when is it being rolled out, what’s the taper rate and who can claim the benefit?

"Advance payments can help people make ends meet during this period, but they must be combined with more action to reduce the number of people waiting more than six weeks for their initial payment.

"The government also need to make sure people have access to the support they need to help them adapt as they move onto the new benefit."

The charity said it is now committed to working with the DWP and others to ensure the new system works for everyone.”

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