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Our measures will ease claimants’ transition to Universal Credit
Changes to Universal Credit kicking in this week will help claimants, writes minister Kit Malthouse.
From this week,when they move on to Universal Credit, we will continue to pay people’s housing benefit for two weeks after their claim ends.
This rent boost is worth an average £233 to people and is set to help 2.3m people across Britain, including 233,000 in Scotland and 116,000 in Wales.
This, and the wider £1.5bn improvements we announced in the Budget, will reassure landlords there is significant and generous support in place for their tenants moving from housing benefit to Universal Credit.
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So what will this mean for tenants when they move on to Universal Credit?
First, no one should wait six weeks for their first Universal Credit payment any more, as we have removed the seven waiting days.
This means people will receive their first Universal Credit payment in five weeks, when we can verify their claim.
Second, for housing benefit claimants moving on to Universal Credit, of course, we will continue to pay their housing benefit for two of those weeks.
Three weeks later they will have their first Universal Credit payment paid into their bank account which will include five weeks’ worth of housing costs to cover the three weeks’ rent due.
“Our significant and generous support helps claimants on legacy benefits move to Universal Credit smoothly”
Finally, if people still need support before their first Universal Credit payment, they can get a 100% advance of their Universal Credit payment, which was increased from 50% at the beginning of the year.
This is interest-free, and the repayment schedule has been extended to up to a year, if needed. Soon we will be making it easier for people to take up an advance by applying for one online.
Once people are on Universal Credit, they receive unprecedented personalised support that responds as their needs or circumstances change to help them make the most of the opportunities open to them.
And we are seeing Universal Credit claimants moving into work faster and staying in work longer than people on the old system.
Our significant and generous support helps claimants on legacy benefits move to Universal Credit smoothly, so they can make the most of its better, modernised support to reach their full potential.
Kit Malthouse, minister for family support, housing and child maintenance
