Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps she is taking to ensure that universal credit claimants are not penalised as a result of delays in being placed on furlough under the Coronavirus Job Retention Scheme and having backdated payments treated as current income.

Universal Credit replaces a highly complex system of multiple benefits with a single monthly payment. It introduces a simple taper system to ensure that claimants are better off in work and keeping more of what they earn compared to the legacy benefit system.

The amount of Universal Credit paid to claimants reflects, as closely as possible, the actual circumstances of a household during each monthly assessment period. Monthly assessment periods align to the way the majority of employees are paid and also allows Universal Credit to be adjusted each month. This means that if a claimant’s income falls, they will not have to wait several months for a rise in their Universal Credit.

During the COVID-19 pandemic, it has been identified that some employers are reporting earnings incorrectly as a result of the Coronavirus Job Retention Scheme. We are working closely with HM Revenue and Customs on this issue who have re-enforced guidance and are contacting employers on the cases we identify.