MPs want benefits claimants to be paid up front

NEW benefits claimants should be given financial support while they wait for their first Universal Credit payment, MPs have said.

First- time claimants should receive a starter payment to ensure that they can afford basics during the five- week wait for an initial payment, according to the cross- party Work and Pensions Committee.

Currently, advance payments can be given to tide claimants over but these must be repaid, meaning they risk being pushed into debt.

Citizens Advice said half the people it helps during the wait are unable to keep up with bills and rent or afford essentials, while the National Audit Office said it can exacerbate claimants’ debt and financial difficulties.

The committee said advance payments should be renamed “new claim loans” so that people are clear that they must be paid back.

It also wants the Department for Work and Pensions to recognise that requesting money is a sign of someone struggling, and offer support as soon as possible.

Introducing a new payment, equivalent to three weeks of the standard allowance, would be a simple way to ensure claimants can afford basic living essentials, the MPs say.

The payment should be made two weeks after the initial claim once the claimant’s identity has been verified, to prevent fraud.

This is estimated to cost £1,018 min 2021-22.

A Department for Work and Pensions spokeswoman said: “With Universal Credit no one has to wait five weeks to be paid, as urgent advances are available.

“Since the start of the pandemic more than two million payments have been made to new claimants within days of being requested.

“We have provided £ 9.3bn extra welfare support to help those most in need.”