Universal Credit

(asked on 4th May 2018) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what recent assessment she has made of the compatibility of the operation of universal credit with the earning patterns of claimants who are not paid once a month.


Answered by
Alok Sharma Portrait
Alok Sharma
COP26 President (Cabinet Office)
This question was answered on 15th May 2018

Our internal evidence suggests that around 70% of people in employment on low incomes are paid monthly or 4 weekly. The monthly assessment period is therefore crucial to creating and maintaining the strong work incentives at the heart of Universal Credit by mirroring the world of work.

An assessment period of less than a month would not work for those paid monthly. In contrast, an assessment period of a month means the system can adjust to weekly, fortnightly, or four-weekly payments.

However, we are aware that some claimants paid four-weekly, fortnightly, weekly or on a fixed day every month, may receive two or more sets of earnings during one Universal Credit assessment period. This may reduce, or in some cases, nil the Universal Credit award the claimant receives that month. We have produced guidance to help ensure claimants, staff and representatives are aware of this and the guidance is available at the following link: https://www.gov.uk/government/publications/universal-credit-different-earning-patterns-and-your-payments/universal-credit-different-earning-patterns-and-your-payments-payment-cycles.

Furthermore the Government is working with employers to ensure that they use the most appropriate payment practices and comply with Real Time Information guidelines in order to minimise these instances.

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