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 impact of reductions in universal credit entitlement for working claimants who are paid by their employers on a (a) weekly, (b) fortnightly and (c) four-weekly basis.

Universal Credit is designed to top-up earnings from employment, adapting to changes in the amount of earnings received each month. The amount of Universal Credit paid each month 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.

The Department has no plans to change either Universal Credit assessment periods or payment structures. They are fundamental parts of the design, reflecting payment patterns in the world of work where the majority of people are paid monthly. Ensuring similarities between paid employment and receiving benefits eliminates an important barrier which could prevent claimants from adjusting to paid employment.

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, where the Universal Credit amount reduces 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.