Millions of individuals and families claiming Universal Credit are confronting a challenging five-week wait for their initial payments, according to a recent analysis. This delay is sparking widespread concern as the Department for Work and Pensions (DWP) acknowledges the system is under review.
System Under Pressure as Legacy Benefits Phase Out
From April, Universal Credit will fully replace six legacy benefits, a transition that began thirteen years ago. This change means more than 15 million households across the UK are expected to rely on this single benefit system. The shift comes as legacy benefits are completely scrapped and phased out, centralising support under Universal Credit.
Report Highlights Critical Flaws in Payment Structure
A comprehensive report from the Resolution Foundation has identified several critical issues within the Universal Credit framework. The most pressing concern is the mandatory five-week waiting period for the first payment after a successful claim. This delay is not merely an administrative hurdle; it has profound real-world consequences for claimants.
One research participant, identified as Alby, articulated the severe impact, stating that this rule effectively "pushes people into crisis at the exact moment they’re most vulnerable." The financial strain is often exacerbated as many claimants feel compelled to take an advance payment during this wait. Alby added, "Many have no choice but to take an advance, which then leads to deductions and deepens financial pressure in the months that follow."
Voices from Claimants and Advocates
Ella, a current Universal Credit claimant, emphasised the need for systemic reform focused on human dignity. "It would make a huge difference to the lives of millions of Universal Credit claimants if we can co-produce and create a system which promotes dignity and respect," she said. "These values should be at the very core of Universal Credit so that no family is left lost in the system and wrongfully penalised."
Lindsay Judge, Research Director at the Resolution Foundation, underscored the urgency of reform. "Universal Credit now supports more than half of all children in the UK, making it more urgent than ever that the government reforms the system to make it easier to use for the 15 million people who rely on it," she stated.
Judge outlined potential improvements, noting, "Our proposals show that a range of structural and cultural changes could transform claimants' day-to-day experiences of the system with only a marginal increase in the year-on-year benefit spend. From softening the five-week wait to supporting parents with upfront childcare costs, these changes would make Universal Credit simpler, more flexible, and more dignified for the families it's designed to support."
DWP Response and Ongoing Review
In response to the findings, a DWP spokesperson highlighted some positive aspects and ongoing efforts. "We support millions of people through Universal Credit every year and are pleased this report finds customer satisfaction is relatively high," the spokesperson said.
The department pointed to specific measures already implemented, including enabling parents to move into work and claim back most childcare costs, boosting the standard rate of Universal Credit, and adjusting debt deduction rules to allow 1.2 million households to retain more of their money.
However, the spokesperson acknowledged room for improvement, stating, "But we know Universal Credit could work better, which is why we're reviewing it – including how we support people before their first payment." This admission signals a recognition of the systemic issues raised by claimants and researchers alike.
As the April deadline approaches, the call for meaningful reform grows louder, with advocates urging the government to address the five-week wait and other structural flaws to prevent further financial hardship for millions of vulnerable households.
