Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps her Department is taking to ensure that payments of statutory maternity pay that are delayed due to bank holidays do not affect universal credit payments.

Statutory Maternity Pay (SMP) is paid by an employer through their payroll system and is therefore a form of earnings subject to the work allowance (where a claimant is eligible) and tapering, in the same way as other earned income. As a consequence, information surrounding the volumes of SMP payments received by Universal Credit claimants in the Highland Council area is not readily available and to provide it would incur disproportionate cost.

Universal Credit seeks to take earnings into account in a way that is fair and transparent. The amount of Universal Credit paid reflects, as closely as possible, the actual circumstances of a household during each monthly assessment period, including any earnings reported by their employer or employers during the assessment period, regardless of when they were paid, or which month they relate to.

Assessment periods allow for Universal Credit awards to be adjusted on a monthly basis, ensuring that if a claimant’s income changes, they do not have to wait several months for a corresponding change in their Universal Credit award. Claimants can discuss the implications of any changes in earnings with their Case Manager or Work Coach and can be referred to personal budgeting support to help them manage their budgeting.

The Department has been working closely with HMRC since Universal Credit went live in 2013 to support and inform employers who report earnings to emphasise the importance of timely reporting via the Real Time Information system.

HMRC have updated their guidance to reiterate to employers the importance of reporting accurate dates and the impact on payment cycles; the Financial Secretary to the Treasury is also working closely with HMRC and employers to do this.