Universal Credit is bringing fundamental change to the welfare system, making sure it pays to work and helping people to move into and progress within work. Studies have shown Universal Credit claimants are more likely to move into work than claimants on Jobseeker's Allowance (JSA), and that they do so faster. 

Key to the design of Universal Credit is the monthly assessment period. Payments are made monthly in arrears to mirror the world of work, making the transition to working life easier and giving claimants more responsibility for managing their finances. Claimants will usually receive their payment seven days after each assessment period ends. 

New claimants have the opportunity to discuss any concerns about how they will manage their finances with their work coach through Personal Budgeting Support and they can be signposted to appropriate third party services. Alternative Payment Arrangements can also be put in place in some circumstances, to allow payments to be made more regularly, to split payments between partners, or to pay the housing element of Universal Credit directly to the landlord.

Many claimants may come to Universal Credit with final earnings to support them until their first payment, or may find work relatively quickly. However, the payment lag has undoubtedly proved to be an issue with some people. So for those individuals who think they may face difficulties before their first payment, an advance payment can be requested. Advance payments can help with managing the initial period before payments start, and are treated as a loan, with repayments automatically deducted from future Universal Credit payments. Around half of all new claimants to Universal Credit receive an advance.

However, it appears some people have not been made aware of the availability of the advance payment, and therefore the Secretary of State for Work and Pensions, David Gauke MP, recently announced that fresh guidance has been issued to DWP staff to ensure that anyone who needs an advance payment will be offered it up front, and to avoid a six week wait, this will be received within five working days, or on the same day if someone is in immediate need.