Council staff set to lose out in
COUNCIL workers have been warned they could lose vital benefit payments – simply because of how they are paid.
In the latest example of the shambles surrounding the UK Government’s Universal Credit system, South Lanarkshire Council staff face losing out on cash in the run-up to Christmas.
The problem arises because the amount of Universal Credit paid changes automatically if there are variations to a recipient’s take-home pay within any calendar month.
South Lanarkshire Council employees get paid every four weeks. It means they will receive two payments in November.
The council’s finance director Paul Manning has now contacted all employees to warn them the double-salary payment could make their income too high to continue to receive Universal Credit (UC).
In a memo seen by the Record, he said: “If you are in receipt of UC this may mean that your income may be too high to continue to qualify and your claim may be cancelled.
“If this happens, you will be notified by the DWP. This will mean that you must apply for UC again.”
The council boss also gave stark advice to employees who could be affected by the issue.
He said: “You will need to be prepared for a change in your monthly UC payment as a result of this.
“You may need to consider how you manage your money each month: For example, thinking about the bills you need to pay, how you normally pay these and the date when the payments are due.
“You may also want to consider
if you need to set money aside for the month when your UC payments will reduce or stop.”
Manning last night told the Record: “We felt it was extremely important to make employees aware of how Universal Credit payments work and the impact it can have on their income.”
It is unclear how many Scottish councils follow a similar pay structure to South Lanarkshire.
Universal Credit brings together a range of benefits, including several in-work benefits such as housing benefit, working tax credit, child tax credit and income support.
Labour MSP Monica Lennon said last night: “This is the grim reality of the Tories’ cruel and incompetent flagship Universal Credit. How much more misery needs to be heaped on working and vulnerable people before Ruth Davidson and David Mundell call time on this disgraceful policy?
“Council chiefs are struggling to maintain austerity-ravaged frontline services and now they are preparing their workers for a winter of financial hardship and uncertainty.
“Time is up for Universal Credit and the nasty Tories.”
A DWP spokesman said: “Universal Credit is a flexible and responsive benefit that adjusts automatically to people’s earnings and gives claimants more control over their working lives and their finances.
“We’ve already made significant improvements to Universal Credit, such as 100 per cent advances to support people before their first payment, removing the seven waiting days and providing an extra two weeks’ housing support for claimants during the transition.
“We have recently announced a partnership with Citizens Advice to provide Universal Support, which will help the most vulnerable claimants make and manage their claim – which includes budgeting support.”