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| Budget 2017: Universal credit waiting period cut by one week in Hammond U-turn on flagship benefits policy | Budget 2017: Universal credit waiting period cut by one week in Hammond U-turn on flagship benefits policy |
| (35 minutes later) | |
| Philip Hammond has bowed to intense political pressure and announced a “screeching” U-turn on the rollout of the universal credit regime – the Government’s flagship welfare policy. | |
| Addressing concerns raised over universal credit in recent months in his Budget statement, the Chancellor said the wait for the initial payment for claimants will be cut by one week – to five – after criticism that the wait is causing hardship. | Addressing concerns raised over universal credit in recent months in his Budget statement, the Chancellor said the wait for the initial payment for claimants will be cut by one week – to five – after criticism that the wait is causing hardship. |
| The main anxiety among MPs and charities focused on the six-week wait claimants have been forced to endure before receiving their first payment under the new regime after transferring from the legacy benefits system. | The main anxiety among MPs and charities focused on the six-week wait claimants have been forced to endure before receiving their first payment under the new regime after transferring from the legacy benefits system. |
| Speaking in the Commons, Mr Hammond said he had earmarked a £1.5bn package to cut to waiting period for payments and make it easier for claimants to receive an advance. | Speaking in the Commons, Mr Hammond said he had earmarked a £1.5bn package to cut to waiting period for payments and make it easier for claimants to receive an advance. |
| He said he would remove the seven-day waiting period so entitlement for universal credit starts on the day of the claim, adding that any household needing an advance can access a full month’s payment within five days of applying. | He said he would remove the seven-day waiting period so entitlement for universal credit starts on the day of the claim, adding that any household needing an advance can access a full month’s payment within five days of applying. |
| Mr Hammond said the repayment period for these advances – effectively a loan for struggling claimants – will also be extended from six to 12 months. | Mr Hammond said the repayment period for these advances – effectively a loan for struggling claimants – will also be extended from six to 12 months. |
| He added that David Gauke, the Work and Pensions Secretary, will be outlining further details on changes to the flagship welfare policy in the Commons on Thursday. | He added that David Gauke, the Work and Pensions Secretary, will be outlining further details on changes to the flagship welfare policy in the Commons on Thursday. |
| Responding to the U-turn the Conservative MP Johnny Mercer, who had previously raised concerns over the rollout of universal credit, said: “Huge news. The model compassionate Conservative party get things like universal credit right. | |
| “The biggest poverty fighting tool we have,” he added. | |
| But Shadow Cabinet minister Andrew Gwynne described the announcement as a “screeching U-turn”, adding: “Nice of Hammond to acknowledge this was only done because Jeremy Corbyn and Labour pushed the issue up the political agenda.” | |
| More follows… | More follows… |