MP calls for ‘starter payments’ for people claiming Universal Credit for the first time

Oldham East and Saddleworth MP Debbie Abrahams

Oldham East and Saddleworth MP Debbie Abrahams is backing a report which says that a non-repayable starter payment should be made to people who are claiming Universal Credit (UC) for the first time.

Mrs Abrahams, who is a member of the Work and Pensions Select Committee which released the report titled: Universal Credit: the wait for the first payment, said: “The committee found that the current wait of at least five weeks for the first Universal Credit payment causes difficulties for households leaving many reliant on food banks, falling seriously behind with their rent, and even experiencing increased levels of psychological distress. 

“For people claiming benefits for the first time, or people who’ve faced a significant change in their circumstances, the Government should provide starter payments. 

“Doing so would both cut down on the need for advance repayable loans and ensure that nobody is forced into debt just to be able to afford to eat and keep a roof over their heads. 

“UC is a highly automated system that has helped deal with the huge influx of new claims caused by the coronavirus pandemic.

"However, the level of automation can also be a major weakness, leaving people without the tailored support they need.  

“There is much the Government can do immediately to alleviate the worst effects and, as a committee, we believe that our proposals offer practical solutions for making UC work for everyone who needs it.” 

The committee’s report also calls for changes to the way that historic tax credit is clawed back from people when they move to UC - and for DWP’s and other public sector debt collection to follow best practice in the private sector. 

In addition, the committee is calling on the Government to make permanent the £20 per week increase in the standard UC allowance announced in response to the coronavirus pandemic. 

Do you have a story for us? Want to tell us about something going on in and around Oldham? Let us know by emailing news@oldham-chronicle.co.uk , calling our Oldham-based newsroom on 0161 633 2121 , tweeting us @oldhamchronicle or messaging us through our Facebook page. All contact will be treated in confidence.