Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps he will take to ensure that people paid weekly do not lose universal credit entitlements in months that contain five Fridays.

No one on Universal Credit, who are weekly paid, will see a drop in their total income from earnings and benefits in any assessment period with 5 paydays in it. In contrast because of the way UC works in 5 payday assessment periods, the total income a claimant will receive in that month will always be higher, whether their UC is reduced or extinguished

For example if someone is weekly paid at a rate of £200, and has a gross UC entitlement of £1400 a month their total UC entitlement (assuming no work allowance) is £896 a month and £800 from earnings. Total income in the month, benefits and earnings of £1696.

In a five payday month their earnings rise to £1000, UC falls to £770. Total income from benefits and earnings £1770.

For someone on higher earnings of £450 a week, with the same UC gross entitlement of £1400 will receive in a four payday month earnings of £1800 and UC of £266 a month with a total monthly income of £2066. In a five week month their total earnings rise to £2250, UC entitlement zero but total income in that month is higher than in the four payday month.

Everyone who is weekly paid will have a higher income in the 5 payday month, either through a combination of UC and earnings or on straight earnings. The UC taper ensure that people keep every pound of their earnings, with only a 63% reduction in UC entitlement. This is how the system works and how we make work pay. Media reports to the contrary were wrong, misleading and alarmist for UC claimants and I welcome the opportunity to put the record straight.