Universal Credit has just made an important change – and its good news
The time that struggling families will have to wait to receive their first payment has been slashed to five weeks down from six
THE six-week wait for Universal Credit has been slashed to five weeks after concerns it's was driving people into poverty.
The Department for Work and Pensions reckon the changes will benefit households by around £160.
Struggling families can apply for the benefit to help cover bills but the scheme has been slammed by campaigners for making families wait so long to receive payments.
Now, the DWP has announced that the wait has been cut by seven days, meaning families will receive payments five weeks after the day they claim.
Secretary for the DWP Esther McVey said: "It can be a worrying time looking for work and our priorities are to help people find employment quickly and to improve lives.
"Our package of support affords better help for people as soon as they make a claim to Universal Credit."
Citizens Advice has been campaigning for the mandatory seven day delay to be scrapped said the changes "should make a sizeable difference".
Gillian Guy from the organisation said: "However, we will continue to monitor the situation to make sure these changes have the intended effect.”
What is Universal Credit and how does it work?
Universal Credit is a new benefit aimed at helping the three million families struggling to pay bills.
It was introduced in October last year in an attempt to simplify the welfare system by replacing different benefits like jobseeker's allowance or housing benefit with a single monthly payment.
But it's been slammed by campaigners for lengthy delays, with a third of families having to wait more than six weeks for their first instalment.
Are you eligible for Universal Credit?
YOU'RE likely to be moved onto Universal Credit from 2019 onwards if you get any of the following benefits:
- Housing Benefit
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Child Tax Credit
- Working Tax Credit
- Income Support
Up until now, you have to apply for the credit online and visit your local Jobcentre Plus within seven days to make an appointment with a work coach before being able to claim. These are known as "waiting days".
Because the credit is paid in monthly arrears, claimants have to wait four weeks before they receive the money.
Then they allow another seven days for the payment to reach your account. The whole process adds up to six weeks.
What has changed?
In the Autumn budget, Chancellor Philip Hammond announced in the Autumn Budget that the government would pour £1.5 billion into reducing the waiting time by seven days.
The government are holding up their promise and have scrapped the initial seven day waiting period.
This means that you'll have to wait five weeks from the day you claim, rather than six.
How to get an advancement payment
DETAILS about the refreshed guidance have not yet been released but here's what you can do now:
- Ask for an advance payment at your Universal Credit interview, which you’ll be booked in for after you finish your online application
- The interview will take place at a Jobcentre.
- More details on : Universal Credit helpline
Telephone: 0345 600 0723
Textphone: 0345 600 0743
Monday to Friday, 8am to 6pm - Here is some
People claiming advance payments will now receive 100 per cent of the expected Universal Credit payment - rather than up to - within five days and they'll have two years to pay it back.
What is an advance credit?
Struggling families who can't wait for the money to cover bills can get an advance cash payments to stop them falling in to debt.
Claimants are able to get some cash within five days or on the same day they make a claim in emergency cases - rather than waiting weeks for their first Universal Credit payment.
Most read in money
But the upfront payment is a loan which means you'll have to pay it back.
The repayments will be automatically deducted from your Universal Credit payments after you've taken the loan.
You should ask for the advance 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.
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516. Don't forget to join the for the latest bargains and money-saving advice.