Conservatives 'planning Budget U-turn' over rollout of Universal Credit regime

It was reported that Chancellor Philip Hammond is set to make an announcement at the autumn Budget – scheduled for 22 November

Chancellor Philip Hammond is expected to make an announcement on Universal Credit next month

Ministers are reportedly preparing for a major U-turn on the rollout of Universal Credit in the Budget by reducing the controversial six-week wait to four for the first payment to claimants.

It comes after weeks of sustained pressure on Downing Street from Conservative backbenchers, the Labour party and charities warning the Government’s flagship welfare programme – due to be accelerated this month – is pushing recipients into poverty, arrears and a reliance on food banks.

The main anxiety among MPs and charities focuses on the six-week wait claimants are forced to endure before receiving their first payment under the new regime after transferring from the legacy benefits system.

While The Independent understands that no announcement is imminent, The Sunday Telegraph claimed the Government has already resolved to reduce the waiting period by seven days and officials are now working on plans to reduce the initial wait further.

The newspaper claimed that Philip Hammond, the Chancellor, is set to make the announcement at the autumn Budget – scheduled for 22 November.

A Government spokesperson said: “The Government remains determined to ensure that people joining Universal Credit don’t face hardship, which is why we recently announced significant improvements to the system of advance payments that people can get as soon as they get into the system.

“We are continually monitoring the system and will take any actions if necessary.”

Frank Field, the Labour MP who chairs the Work and Pensions committee, added: “Tory MPs have said that they are expectant that it will be in the Budget. If I was the Government, that’s certainly a sensible thing to do.” Last week, Mr Field’s committee demanded the Government urgently cut the wait for claimants to a month.

And Conservative MP Heidi Allen, who also sits on the committee and has been a vocal critic of the Government’s handling of the rollout of Universal Credit, said: “Despite the clear support for Universal Credit, there is cross-party recognition that the six-week wait does not honour the original intentions of the system.

“To truly represent the world of work, the payment cycle must mirror how the majority of people are paid, i.e monthly. Universal Credit will only be the success it deserves to be if it works with claimants to find work, and not against them.”

A recent poll for The Independent also found that three-quarters of British people – including a majority of Conservative voters – want the Government to take action now to cut the time vulnerable people are waiting before receiving their first Universal Credit payment.