Claimants may be treated as receiving two monthly wages in one assessment period
Kevin Higgins, Head of Policy at Advice NI(Image: Nigel Hunter)
A warning has been issued to workers claiming Universal Credit who are paid early at Christmas.
Advice NI says employees who are paid early at Christmas may be affected by the design of the UC system whereby claimants may be treated as receiving two monthly wages in one assessment period. This results in a dramatically reduced or even nil Universal Credit award.
Kevin Higgins, Head of Policy, Advice NI explained: “Universal Credit operates on the basis of a calendar month Assessment Period. For example, if you claim Universal Credit on the 27th of the month, your Assessment Period will run from the 27th to the 26th of the following month. When the Assessment Period ends, the amount of Universal Credit payable is calculated from the maximum amount of Universal Credit payable, less any income or earnings received.
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“Claimants who are in work and are paid monthly, each month’s net pay should fall into each assessment period, and your Universal Credit payments should not vary significantly from month to month if your net pay remains broadly the same.
“However, we know that at Christmas some employers may process wages early for staff. This may result in two monthly pay packets falling within the same Universal Credit Assessment Period. This would ordinarily mean that claimants would receive a reduced or nil award for that Assessment Period.
“To address this, the benefit rules allow the Department to use its discretion to prevent a reduced Universal Credit award in certain circumstances. According to official information on NI Direct: If you are paid monthly, there may be times when you receive two payments of your wages in a Universal Credit assessment period. If this happens, send a message in your UC journal or phone the UC Service Centre.
“In these circumstances what may be possible is that the Universal Credit payments will be adjusted so that you get your usual amount, and the relevant pay packets will be allocated to the appropriate Assessment Period. By taking this action, Universal Credit claimants should have more certainty about their finances over Christmas and so reduce any distress and hardship that might otherwise be caused.”
If you live in Northern Ireland and are worried about these issues, you can contact the Advice NI Helpline on 0800 915 4604 or email advice@adviceni.net. You can also contact your local advice organisation for assistance.
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