Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many women in receipt of (a) statutory maternity pay and (b) maternity allowance have applied for universal credit since 1 January 2019.
Answered by Mims Davies - Minister of State (Department for Work and Pensions)
In 2019, approximately 34,000 Universal Credit claims were made by households containing an individual who declared that they are receiving Maternity Allowance. This represents just under 1% of claims submitted over this time period.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, for what reasons maternity allowance is treated as unearned income and deducted from an award of universal credit award whereas statutory maternity pay is often disregarded in the calculation for that benefit as a result of the work allowance and 63 percent earnings taper rate; what assessment her Department has made of the financial effect of that policy on women on maternity allowance who apply for universal credit; and if she will make a statement.
Answered by Mims Davies - Minister of State (Department for Work and Pensions)
Statutory Maternity Pay is paid by an employer through their payroll system and is therefore a form of earnings subject to the work allowance (where a claimant is eligible) and tapering, in the same way as other earned income. Universal Credit seeks to take earnings into account in a way that is fair and transparent. The amount of Universal Credit paid reflects, as closely as possible, the actual circumstances of a household during each monthly assessment period, including any earnings reported by their employer or employers during the assessment period, regardless of when they were paid, or which month they relate to.
Assessment periods allow for Universal Credit awards to be adjusted on a monthly basis, ensuring that if a claimant’s income changes, they do not have to wait several months for a corresponding change in their Universal Credit award. Claimants can discuss the implications of any changes in earnings with their Case Manager or Work Coach and can be referred to personal budgeting support to help them manage their budgeting.
Asked by: Caroline Lucas (Green Party - Brighton, Pavilion)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, with reference to Maternity Action's briefing, Different treatment of Maternity Allowance and Statutory Maternity Pay in the calculation of Universal Credit awards, published February 2020, what steps her Department is taking to ensure equitable treatment of pregnant women and new mothers in receipt of (a) maternity allowance and (b) statutory maternity pay who apply for universal credit.
Answered by Mims Davies - Minister of State (Department for Work and Pensions)
Statutory Maternity Pay is paid by an employer through their payroll system and is therefore a form of earnings subject to the work allowance (where a claimant is eligible) and tapering, in the same way as other earned income. Universal Credit seeks to take earnings into account in a way that is fair and transparent. The amount of Universal Credit paid reflects, as closely as possible, the actual circumstances of a household during each monthly assessment period, including any earnings reported by their employer or employers during the assessment period, regardless of when they were paid, or which month they relate to.
Assessment periods allow for Universal Credit awards to be adjusted on a monthly basis, ensuring that if a claimant’s income changes, they do not have to wait several months for a corresponding change in their Universal Credit award. Claimants can discuss the implications of any changes in earnings with their Case Manager or Work Coach and can be referred to personal budgeting support to help them manage their budgeting.
Asked by: Jamie Stone (Liberal Democrat - Caithness, Sutherland and Easter Ross)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how much a universal credit payment to a single mother is reduced by when two maternity payments are received within the universal credit calculation period due to a bank holiday.
Answered by Mims Davies - Minister of State (Department for Work and Pensions)
Statutory Maternity Pay (SMP) is paid by an employer through their payroll system and is therefore a form of earnings subject to the work allowance (where a claimant is eligible) and tapering, in the same way as other earned income. As a consequence, information surrounding the volumes of SMP payments received by Universal Credit claimants in the Highland Council area is not readily available and to provide it would incur disproportionate cost.
Universal Credit seeks to take earnings into account in a way that is fair and transparent. The amount of Universal Credit paid reflects, as closely as possible, the actual circumstances of a household during each monthly assessment period, including any earnings reported by their employer or employers during the assessment period, regardless of when they were paid, or which month they relate to.
Assessment periods allow for Universal Credit awards to be adjusted on a monthly basis, ensuring that if a claimant’s income changes, they do not have to wait several months for a corresponding change in their Universal Credit award. Claimants can discuss the implications of any changes in earnings with their Case Manager or Work Coach and can be referred to personal budgeting support to help them manage their budgeting.
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 the Real Time Information system.
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.
Asked by: Jamie Stone (Liberal Democrat - Caithness, Sutherland and Easter Ross)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many people in the Highland Council area received two statutory maternity payments within the universal credit calculation period due to a bank holiday in 2019.
Answered by Mims Davies - Minister of State (Department for Work and Pensions)
Statutory Maternity Pay (SMP) is paid by an employer through their payroll system and is therefore a form of earnings subject to the work allowance (where a claimant is eligible) and tapering, in the same way as other earned income. As a consequence, information surrounding the volumes of SMP payments received by Universal Credit claimants in the Highland Council area is not readily available and to provide it would incur disproportionate cost.
Universal Credit seeks to take earnings into account in a way that is fair and transparent. The amount of Universal Credit paid reflects, as closely as possible, the actual circumstances of a household during each monthly assessment period, including any earnings reported by their employer or employers during the assessment period, regardless of when they were paid, or which month they relate to.
Assessment periods allow for Universal Credit awards to be adjusted on a monthly basis, ensuring that if a claimant’s income changes, they do not have to wait several months for a corresponding change in their Universal Credit award. Claimants can discuss the implications of any changes in earnings with their Case Manager or Work Coach and can be referred to personal budgeting support to help them manage their budgeting.
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 the Real Time Information system.
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.
Asked by: Jamie Stone (Liberal Democrat - Caithness, Sutherland and Easter Ross)
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 payments of statutory maternity pay that are delayed due to bank holidays do not affect universal credit payments.
Answered by Mims Davies - Minister of State (Department for Work and Pensions)
Statutory Maternity Pay (SMP) is paid by an employer through their payroll system and is therefore a form of earnings subject to the work allowance (where a claimant is eligible) and tapering, in the same way as other earned income. As a consequence, information surrounding the volumes of SMP payments received by Universal Credit claimants in the Highland Council area is not readily available and to provide it would incur disproportionate cost.
Universal Credit seeks to take earnings into account in a way that is fair and transparent. The amount of Universal Credit paid reflects, as closely as possible, the actual circumstances of a household during each monthly assessment period, including any earnings reported by their employer or employers during the assessment period, regardless of when they were paid, or which month they relate to.
Assessment periods allow for Universal Credit awards to be adjusted on a monthly basis, ensuring that if a claimant’s income changes, they do not have to wait several months for a corresponding change in their Universal Credit award. Claimants can discuss the implications of any changes in earnings with their Case Manager or Work Coach and can be referred to personal budgeting support to help them manage their budgeting.
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 the Real Time Information system.
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.
Asked by: Mark Tami (Labour - Alyn and Deeside)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, for what reasons maternity allowance and statutory maternity pay are classified differently under the universal credit rules.
Answered by Will Quince
Universal Credit is a means tested system of support. Where claimants have income available to meet their everyday living costs, such as maternity allowance, it is right that their entitlement to UC is adjusted accordingly (as currently is the case with other DWP legacy means tested working age benefits).
Statutory maternity pay is paid by an employer and is therefore a form of earnings subject to the work allowance and tapering within Universal Credit, as are other earnings.
Asked by: Mark Tami (Labour - Alyn and Deeside)
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 deduction of maternity allowance from universal credit as unearned income on the (a) affordability for new mothers of (i) housing costs, (ii) nappies and (iii) and other baby essentials and (b) children of those mothers in respect of the principle set out in section 1(1) of the Children Act 1989.
Answered by Will Quince
Universal Credit is a means tested system of support. Where claimants have income available to meet their everyday living costs, such as maternity allowance, it is right that their entitlement to UC is adjusted accordingly (as currently is the case with other DWP legacy means tested working age benefits).
Statutory maternity pay is paid by an employer and is therefore a form of earnings subject to the work allowance and tapering within Universal Credit, as are other earnings.
Asked by: Gill Furniss (Labour - Sheffield, Brightside and Hillsborough)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if she will review the merits of the higher deduction from universal credit payments for maternity allowance than for maternity pay.
Answered by Will Quince
Universal Credit is a means tested system of support and where claimants have income available to meet their everyday living costs, such as maternity allowance, it is right that their entitlement to UC is adjusted accordingly (as currently is the case with other DWP legacy means tested working age benefits).
Statutory maternity pay is paid by an employer and is a form of earnings. As a result, statutory maternity pay is therefore subject to the work allowance and tapering within Universal Credit, as are other earnings.
Asked by: Steve McCabe (Labour - Birmingham, Selly Oak)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, for what reason universal credit classifies maternity allowance as income and statutory maternity allowance as earnings.
Answered by Will Quince
Universal Credit is a means tested system of support. Where claimants have income available to meet their everyday living costs, such as maternity allowance, it is right that their entitlement to UC is adjusted accordingly (as currently is the case with other DWP legacy means tested working age benefits).
Statutory maternity pay is paid by an employer and is therefore a form of earnings subject to the work allowance and tapering within Universal Credit, as are other earnings.