Universal Credit

(asked on 11th February 2020) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether she will make an assessment of the potential merits of giving in-work universal credit claimants the option to move their assessment period to reflect more closely the dates on which they receive their earnings.


Answered by
Will Quince Portrait
Will Quince
This question was answered on 17th February 2020

The Department has been working closely with HMRC since Universal Credit went live in 2013 to support and inform employers who report earnings to emphasise the importance of timely reporting via RTI system.

Employers should already record on HM Revenue and Customs’ (HMRC) Real Time Information (RTI) system the date a salary is scheduled to be paid, rather than the date it is paid, where it is earlier due to a weekend, bank holiday or at Christmas.

HMRC have updated their guidance to reiterate to employers the importance of reporting accurate dates and the impact on payment cycles; the Financial Secretary to the Treasury is also working closely with HMRC and employers to do this.

Universal Credit takes earnings into account in a way that is fair and transparent. The amount paid reflects, as closely as possible, the actual circumstances of a household during each monthly assessment period. This allows Universal Credit awards to be adjusted on a monthly basis, ensuring that if claimant’s incomes falls, they do not have to wait several months for a rise in their Universal Credit award. Currently there are no plans to change assessment periods.

Claimants can discuss queries about how fluctuating income effects Universal Credit with their case managers and work coaches, who can also signpost to services appropriate to individual circumstances.

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