Autumn Budget 2017: Universal credit wait cut to five weeks

Recognising that there had been ‘genuine concerns about the operational delivery [of universal credit] on both sides of the House’, the Chancellor axed ‘a seven-day waiting period applied at the beginning of a benefit claim so that entitlement to universal credit will start on the day of the claim.

'We have looked at reducing the delay at the end of the first month assessment period. But to do so would mean compromising the principle of payments being made on the same day of the month. A key feature of the system which is very important for claimants in managing their budgets. So to provide greater support during the waiting period we will change the advances system to ensure that any household that needs it can access a full month’s payment within five days of applying.

‘We will make it possible to apply for an advance online. And we will extend the repayment period for advances from 6 months to 12 months. Any new universal credit claimant in receipt of housing benefit, will continue to receive it for two weeks. This is a £1.5bn package to address concerns about the delivery of the benefit.’

The red book, published after the speech, also reveals that the rollout of universal credit is being slowed down.

‘To support these changes the Government will roll out universal credit more gradually between February 2018 and April 2018, and roll-out to all jobcentres will be complete in December 2018.’

Commenting, chief executive of Child Poverty Action Group Alison Garnham said, ‘We were the first to sound the alarm over the waiting days for universal credit, so we’re pleased the Chancellor has acted to remove them and put in place new arrangements for receiving advances as part of an emergency rescue package, but this should have been the budget that ushered in much needed structural reform of Universal Credit to revive the central promise to strengthen the rewards from work and that didn’t happen.  

‘Our new analysis finds while effective tax rates may have improved for some families, big falls in family income caused by cuts and changes to universal credit have left many worse off overall, overwhelming any gains from increases in the national living wage, personal tax allowances and help for childcare. Families on universal credit who want to get better off through earnings gained little from today’s budget. ?

‘What happens to universal credit will shape the future for children in low-income and just managing families. The budgets of ordinary families will not be fit for the future until the work allowances in universal credit have been restored to support parents who want to bring home higher wages.’