Universal Credit

(asked on 25th March 2020) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 20 March 2020 to Question 28608, on Universal Credit, how many universal credit claims were made in 2019 by households containing a person that declared they are receiving Statutory Maternity Pay.


Answered by
Mims Davies Portrait
Mims Davies
Shadow Minister (Women)
This question was answered on 21st April 2020

Statutory Maternity Pay (SMP) is paid by an employer through their payroll system and is therefore treated as a form of earnings for the purposes of assessing entitlement to Universal Credit. Any SMP received is subject to the work allowance (where a claimant is eligible) and tapering, in the same way as other earned income. The earnings data we receive does not allow the Department to identify earnings that include SMP.

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.

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