Work and Pensions Committee Chair Stephen Timms comments on NAO Universal Credit first payment report

“This hard-hitting report on Universal Credit from the National Audit Office confirms the Select Committee’s concern that that the five week wait for the first payment causes ‘financial hardship and debt’.

It provides further evidence that the initial planning assumptions for Universal Credit were naive. We now know UC will cost an extra £1.4bn to the public purse.  It will take more than twice as long to roll out as originally planned.  Far from reducing fraud and error, Universal Credit is driving historic record high levels - more than £1 in every £10 paid through UC is incorrect

DWP has done well to increase payments made on time. Its frontline staff have borne the brunt of that effort, with worrying signs of increased stress and absence from work. But hundreds of thousands of people are still being paid late each year—and vulnerable people are particularly likely to struggle with their claim. 

These important findings from the NAO will be vital to our continuing inquiry into the impact of the wait for a first payment Universal Credit.”

The Committee is carrying out an inquiry into Universal Credit and the wait for a first payment. On Wednesday 15th July in the final evidence session of the inquiry, the Committee will question Welfare Delivery Minister Will Quince MP and the DWP official responsible for UC, Neil Couling.

The inquiry has been examining some of the options available for reducing the current wait for those claiming UC for the first time, which can be up to five weeks. The Committee has previously taken evidence from charities and support groups, policy experts and local authorities, as well as former Work and Pensions Secretary Sir Iain Duncan Smith MP.