Universal Credit

(asked on 25th October 2021) - View Source

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 universal credit claimants who are paid every four weeks and who may on occasion receive a double payment in one assessment period are not penalised.


Answered by
David Rutley Portrait
David Rutley
Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
This question was answered on 28th October 2021

Universal Credit is a means-tested benefit and the amount of Universal Credit paid each monthly assessment period will reflect, as closely as possible, the actual circumstances of a household in that assessment period, including any earnings reported by the employer. As Universal Credit is paid monthly, those who are also paid their earnings on a monthly basis will normally get one payment in each assessment period. For those who are paid differently such as four weekly the frequency of their pay will impact on the amount of Universal Credit they will receive.

Those who are paid four-weekly will normally get one payment in each assessment period and their Universal Credit will reflect the four weekly amount they are paid. For one assessment period a year they will receive two four-weekly payments. This is because there are 12 assessment periods a year and those who are paid four-weekly will receive 13 payments a year. As their income rises in that assessment period, Universal Credit is reduced and this is in line with the long standing general principle of means-tested benefits. However, whilst the Universal Credit amount will reduce in the assessment period where the household has received two payments of four-weekly earnings, they will still have the benefit of the higher income from their earnings.

The Universal Credit assessment period and payment structure are fundamental parts of its design. Universal Credit reflects payment patterns in the world of work. Ensuring similarities between paid employment and claiming benefits eliminates an important barrier which could prevent claimants from adjusting to paid employment.

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