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15:54, 18 November 2017

Universal credit: Households to miss out on benefits over festive season

Universal credit: Households to miss out on advantages more than festive season

  • 18 November 2017
  • From the section UK
Girl at ChristmasImage copyright Getty Images

Thousands of people on universal credit may not be paid over the festive season or might get a lowered payment, the BBC Funds Box show has highlighted.

Those hit will be some of the 67,000 folks who claim the benefit whilst operating and who are paid weekly.

This is due to the fact there are 5 paydays in December, so their monthly income will be also high to get any or some of the benefit. Some will have to reapply.

The government stated only a «minority» of claimants would be affected.

  • What is universal credit — and what’s the dilemma?
  • Universal credit callers face 5 minutes on hold
  • Universal credit rollout ‘should be paused’

Universal credit merges six advantages for working-age people into one particular new payment, which is reduced gradually as you earn a lot more.

The Department for Operate and Pensions warns on its website that people who are paid five occasions in a month might have an earnings that is also higher to qualify for the advantage in that period.

It says individuals will be notified if this takes place and told to reapply for the benefit the following month.

Other individuals who are paid fives instances in a month but do not earn sufficient for universal credit to finish will have their advantage reduced.

Kayley Hignell, from Citizens Guidance, mentioned the way universal credit was calculated brought some rewards but also «considerable spending budget challenges».

She said: «The crucial thing right here is about communication.

«People need to know that if they’re receiving further earnings in 1 month… it may cease their universal credit payment, and that they then subsequently need to place in a new claim to make sure that they continue to get those payments.

«If you’ve got extra money in the month, don’t necessarily bank on the truth that your universal credit is going to keep the same, simply because it could modify it either in this month or the next.»

Rolled out

The Department for Perform and Pensions stated not all those paid weekly would get a reduced payment in December because it would depend on the date on which a claimant’s universal credit was paid.

It also said the payments balanced out, since claimants entitled to a lot more would receive it in the following month.

It said these who reapplied for the benefits would not have to submit new types and would have their current claims restarted.

The DWP stated: «For the vast majority of people in work, they will continue to get paid universal credit in a five-week month.

«Universal credit adjusts automatically to people’s wages. When someone’s wages take them over the UC threshold, they can get universal credit the subsequent month, and this method is operating.»

Universal credit is getting rolled out across the UK in stages, but its implementation, especially the six-week wait to obtain the benefit, has caused controversy.

This week Labour leader Jeremy Corbyn told Prime Minister’s Questions that hundreds of households have been issued with eviction notices by a landlord concerned about the influence of universal credit.

BBC News — Property

Source: New feed

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