Universal Credit finally changes rule to help 85,000 who lose out on cash when paid twice in a month
TENS of thousands of people on Universal Credit will benefit from a rule change stopping them losing cash if they're paid twice in a month.
The U-turn is set to help an estimated 85,000 workers who get the flagship benefit payment.
From November, if a worker is paid twice in the same month from their employer, the benefits system will register one payment in the following assessment period to stop them from being left out of pocket.
The rule change comes after the Court of Appeal ruled in June that the "irrational and unfair" system pushed four single mums into poverty and forced them to rely on foodbanks.
The Department for Work and Pensions (DWP) was ordered to fix the flaw, which is why it's now confirmed a new way to process payments.
The current automatic system is supposed to adjust payments monthly based on changes to a claimant's income, but in reality it only takes into account wages received in the same calendar month.
The problem with this is that it doesn't make allowances for those who are paid multiple times in a month, for example, because payday would normally fall on a weekend or bank holiday.
The flaw leaves vulnerable families without any benefits for a whole month when they don't get paid, and a portion of the "double payment" is docked from their next Universal Credit payment because of the taper rate.
This is when 63p for every £1 earned over the work allowance is deducted from Universal Credit.
The Sun has been campaigning for hard-working Brits to get to keep more of their cash in our Make Universal Credit Work campaign.
In September, the international watchdog, the Human Rights Watch (HRW), slammed the automated system for pushing people into hunger and debt.
The responsibility for manually moving the payday will still rely on Universal Credit although it is recommended that the claimant should inform their work coach in advance if possible via their online journal.
It will be based on Real Time Information (RTI) from the employer as normal - meaning you won't have to do anything extra.
The amendment won't change the day employees are paid either but will simply record it in the following Universal Credit assessment period.
The overhaul will make it easier for Universal Claimants to budget on the otherwise unpredictable system.
The changes will come into affect from November 16 and will particularly benefit workers over the festive season who will see pay day come earlier due to the Christmas bank holidays.
But it will only apply to employees who are paid monthly, so won't help those who are paid weekly or fortnightly to budget.
The four mums behind the court appeal originally challenged the DWP back in 2018. It's not clear if the rule change will be backdated until then.
Sara Willcocks, from charity Turn2Us, said: "It is great news to hear that the DWP has finally addressed this by changing Universal Credit regulations.
"However, the fact that it needs to be done manually is a cause for concern.
"Are work coaches going to proactively look to intervene or will it put the onus on individual claimants?
"Instead of tweaking a broken system around the edges, the government needs to consider whether the IT system needs a complete overhaul in order for it to be fit-for-purpose in the 21st century."
Peter Tutton, head of policy at StepChange welcomed the change but added: "It is also important DWP continues to seek ways to stabilise payments for those who face similar problems, such as those who are paid weekly or bi-weekly or have an irregular income."
Minister for welfare delivery, Will Quince, said: "Universal Credit is a flexible benefit, and we continue to make changes and improvements to make sure people have the best experience possible.
"This change will give stability to people if they’re paid two pay cheques in a single assessment period, by ensuring that their Universal Credit payments remain consistent."
Dame Gillian Guy, chief executive of Citizens Advice, said that while it's a step in the right direction, it only helps people who are paid monthly.
"It could still leave people with fluctuating benefits payments if they’re paid every four weeks and more than one pay packet falls within their assessment period.
“We hope the government will build on this improvement and make Universal Credit a truly flexible benefit that fits with the reality of people’s lives.”
Yesterday, we reported how MPs have demanded the wait for Universal Credit to be slashed to two weeks to prevent massive hardship for poverty-stricken Brits.
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