Chancellor Philip Hammond has bowed to pressure over Universal Credit with a £1.5 billion package to cut the waiting period for payments- by a week.

He has also removed the seven-day waiting period so entitlement starts on the day of the claim.

Changes announced today will also mean any household needing an advance can access a full month's payment within five days of applying instead of half a month's worth.

While the repayment period for advances will increase from six to 12 months.

But Jeremy Corbyn slammed the U-turn as simply not good enough.

He told the House of Commons: “Wouldn’t it have been better to pause the whole thing and look at the problems it has caused?”

In reponse to Mr Hammond, Mr Corbyn said: “The Chancellor’s solution to a failing system causing more debt is to offer a loan," referring to increased ‘advances’ for people in need.

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Mr Hammond has said he listened to "genuine concerns" (
Image:
BBC)

“And the six week wait, with 20% waiting even longer, simply becomes a five-week wait.

“This system has been run down by £3billion of cuts to work allowances.”

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He once again called on the Chancellor to pause and fix Universal Credit.

But Mr Hammond reiterated his government's commitment to the controversial policy which has seen families pushed into debt and rent arrears because of the in-built waiting time.

He said that any new Universal Credit claimant in receipt of housing benefit will continue to receive that benefit for a further 2 weeks.

The government has reduced the waiting time for the controversial policy (
Image:
PA)

Heidi Allen, a Tory backbencher who has campaigned to reform the scheme, gave a thumbs up when she heard the changes.

The chancellor said: "We will always listen to genuine concerns and will act to help where we can."

The reaction from the Child Poverty Action Group, who have campaigned passionately for changes to Universal Credit, was mixed.

The charity's Chief Executive Alison Garnham welcomed changes to the waiting days but said the chancellor had missed an opportunity to completely overhaul the flawed system.

She said: “We were the first to sound the alarm over the waiting days for universal credit, so we're pleased the Chancellor has acted to remove them and put in place new arrangements for receiving advances as part of an emergency rescue package, but this should have been the budget that ushered in much needed structural reform of Universal Credit to revive the central promise to strengthen the rewards from work and that didn’t happen."

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