Claimants of universal credit hit by pay anomaly

Universal credit claimants are losing out on hundreds of pounds a year if their payday falls too close to their assessment date, a charity has warned.

Being paid early as a result of 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).

It said that one in 20 cases analysed by its early warning system, which uses evidence from welfare rights advisers to identify issues, were hit by problems with the monthly assessment system.

Alison Garnham, CPAG chief executive, said: “Universal Credit isn’t working for working people.”