Labour urged to fix Universal Credit with more than 15m households to claim key benefit from April

The government must fix major problems in the Universal Credit system, which is set to be claimed by 15 million households by the end of this year, a new report has warned.

All six ‘legacy benefits’ that Universal Credit was designed to replace when it was launched 13 years ago will finally be replaced by the all-encompassing payment from April. lThis will enable more people than ever to benefit from the benefit and ensure that more than half of all children in the UK (6.5 million) are placed in Universal Credit households.

But researchers from the influential Solution Foundation have drawn on the experiences of claimants and benefits advisors to find that challenges to the system remain.

One of the most persistent problems highlighted is the five-week wait for the first payment after successfully claiming Universal Credit. Independent last year. One research participant named Alby said the rule “pushes people into crisis when they are most vulnerable.”

He added: “Many people have no choice but to take out an advance, leading to disruptions and deepening financial pressure in the months that follow.”

Another commonly raised issue is the lack of flexibility around assessment periods, with the Department for Work and Pensions (DWP) currently only considering monthly income. This is unfair to self-employed people who earn a weekly or quarterly wage, as they risk receiving less support than someone earning the same amount on a stable monthly basis, according to a report by the Solution Foundation.

A Department for Work and Pensions spokesman said the Universal Credit system was being reviewed, including how claimants can be supported ahead of their first payment.

Other issues mentioned in the foundation’s report are as follows:

Universal Credit claimant Ella said: “If we can jointly produce and create a system that promotes dignity and respect, it will make a huge difference to the lives of millions of Universal Credit claimants. These values ​​must be at the very heart of Universal Credit so that no family is lost in the system and unfairly penalised.”

Alongside the technical improvements it highlights, the Solution Foundation adds that a “basic culture reset” is needed to restore confidence in the Universal Credit system.

Lindsay Judge, the charity’s director of research, said: “Universal Credit now supports more than half of all children in the UK, making it more urgent than ever that the government needs to reform the system to make it easier for the 15 million people who rely on it.

“Our recommendations show that a range of structural and cultural changes can transform beneficiaries’ day-to-day experience of the system, with only a marginal increase in annual benefit spending.

“From reducing the five-week waiting period to providing parents with upfront childcare costs, these changes will make Universal Credit simpler, more flexible and more dignified for the families it was designed to support.”

A DWP spokesman said: “We support millions of people through Universal Credit each year and are pleased to find customer satisfaction relatively high in this report.

“We have taken action to ensure parents can go to work and get more of their childcare costs back. We are also putting money back into people’s pockets by increasing the standard rate on Universal Credit and changing the amount of money that can be borrowed from customers, allowing 1.2 million households to keep more of their money.

“But we know Universal Credit could work better, so we are reviewing the credit, including how we support people ahead of their first payment.”