To ask the Minister for Communities (i) what consideration she has given to reducing the five-week wait for a first Universal Credit claim; (ii) what action has she taken on this issue; and (iii) when action on this waiting period will happen.

There are a number of measures in place to mitigate the impact of the 5 week wait for payment of UC. Any person experiencing financial difficulties can apply for an Advance Payment (an interest free payment) where advances, worth up to 100 per cent of a person’s indicative award, are available, if there is a need. Advance payments are deducted over a period of 12 months and from October 2021, the payback period for these advances will be extended further, up to sixteen months. To guard against hardship, the repayment amount was reduced from 40% to 30% of the standard allowance in October 2019. Furthermore, in response to the COVID-19 pandemic, the standard allowance entitlement was increased, from 6 April for one year, by £86.67 per month for everyone claiming Universal Credit.

Since 22nd July 2020, people who move to Universal Credit will have their existing legacy benefit continue for two weeks with no requirement to repay the overlay. A similar run-on is also in place for Housing Benefit claimants who move to Universal Credit as a result of a change of circumstances.

In addition a person claiming UC can apply for a Contingency payment. From 1st January 2020, the Department removed the requirement that people must take out a Universal Credit advance payment before being eligible for a payment from the Universal Credit Contingency Fund. To help simplify the process for making claims to the Universal Credit Contingency Fund an online claim form was recently introduced in addition to the pre-existing telephony based application process. This online form was co-designed in collaboration with the Voluntary and Community Sector.

To help promote the different options available, each person who makes a new claim to Universal Credit is advised of the availability of the Universal Credit Contingency Fund and how to apply via their Universal Credit journal.

My Department continues to monitor the effectiveness of the various support measures that are available for people claiming Universal Credit.