Universal Credit

(asked on 13th January 2021) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the effect of the universal credit monthly assessment period on the financial stability of claimants.


Answered by
Will Quince Portrait
Will Quince
Parliamentary Under-Secretary (Department for Education)
This question was answered on 22nd January 2021

Universal Credit (UC) is a calendar monthly assessed benefit that is paid monthly in arrears. This approach reflects the world of work, where the majority of all employees receive wages monthly.

Unlike the legacy benefit system, Universal Credit takes income and earnings into account in a way that is fair and transparent across all claimant circumstances, such as different frequencies in earnings and income received. The amount of Universal Credit paid reflects, as closely as possible, the actual circumstances of a household for each monthly assessment period, including any income and/or earnings reported by the employer during that period.

Monthly reporting allows Universal Credit to be adjusted on a monthly basis, which ensures that if a claimant's income falls, which results in a rise in their Universal Credit award, they will not have to wait several months to receive it.

In addition, Work Coaches are trained to gauge claimants’ financial needs from their first contact and can refer them to more specialist support for personal budgeting, money guidance and debt advice if required, including through the Money and Pensions Service (MaPS).

This content was generated for your convenience by Parallel Parliament and does not form part of the official record.
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