Cost of Living payment fear
Thousands could lose out due to date flaw
THOUSANDS of Scots on Universal Credit could miss out on a cost-of-living payment due to eligibility rules, an MP has warned.
The SNP’s Martin Docherty-Hughes has written to the Department of Work and Pensions to highlight what he called “flawed” criteria on who could receive a £326 payment this month.
The MP was alerted by a constituent who was told she would miss out on the payment due to her wage being paid on a four-weekly basis instead of per calendar month.
Cost-of-living payments are being paid to millions of low-income households across the UK from this week.
Scots on means-tested benefits should receive the money automatically in their bank, building society or credit union account.
But Docherty-Hughes told the Record he had spoken with one woman who was told by the DWP that she could not receive the payment due to eligibility rules.
The woman, who holds down a job as well as receiving Universal Credit, was left “devastated”.
Docherty-Hughes said: “It’s worrying hundreds of thousands of low-income households who’d expected to receive this cost-of-living payment could miss out because of the Westminster government’s flawed eligibility criteria.
“Families across the country are struggling.
“They need support now and it’s devastating for my constituent and others who are ordinarily in receipt of Universal Credit to be unfairly excluded from this much-needed payment.
“In-work poverty is at its highest level for decades and now the UK government appears to be penalising people who are paid four-weekly, rather than monthly.
“I’d urge the Work and Pensions Secretary to act quickly to resolve this before thousands more families are forced needlessly into foodbanks.”
The first cost-of-living payment of £326 will be paid for most people between July 14 and 31.
The second payment of £324 will then be paid in the autumn.
Those on tax credits will have to wait longer with the first payment in the autumn and the second during the winter.
Anyone who feels they are entitled to the payment – but does not receive it – is advised to contact the office that pays their benefit or tax credits to discuss it.
A DWP spokesman said: “The vast majority of existing recipients of Universal Credit will qualify but inevitably a small number will be ineligible on the qualification dates because of a change of income, earnings or other circumstance.
“Earnings patterns can vary substantially and it would be impossible to choose qualifying dates that work for every single person on Universal Credit.
“However, autumn’s second qualifying date reduces the risk that those with non-monthly pay periods that were ineligible for the first payment, miss out altogether. “For any individuals that are not eligible for this support, or for families that need additional support, the Government is providing £500million to help vulnerable households and from October domestic electricity customers will receive a £400 discount.