Payday move proves costly for claimants
UNIVERSAL credit claimants are losing out on hundreds of pounds a year if their payday falls too close to their assessment date, a charity have warned.
Being paid early due to weekends or bank holidays makes it look like a worker has earned more because they receive two payments in a calendar month.
The figures skew how much they are then assessed as being entitled to in benefits, according to the Child Poverty Action Group (CPAG).
They said one in 20 cases analysed by their early warning system, which uses evidence from welfare rights advisers to identify issues, was hit by problems with the monthly assessment system. Alison Garnham, CPAG chief executive, said: “Universal credit isn’t working for working people.
“Our early warning system shows claimants are often left flummoxed by how much, or how little, universal credit they will receive from one month to the next. But we believe most of the problems created by the monthly assessment system can be fixed relatively easily if the political will is there.
“The mass migration of families on to universal credit should not begin until these fundamental problems are resolved.”
Assessments for allowances are based on the date the benefit was first awarded to a claimant.
Back pay and tax rebates can also trigger the issue, the charity warned.
The Department for Work and Pensions said: “We are listening to stakeholders’ concerns and working on issues regarding payment cycles and we will consider this report carefully.”