Universal Credit claimants could have Christmas benefits slashed if bosses pay wages early this month

UNIVERSAL Credit claimants are being warned they could receive little or no money over Christmas due to a “serious design flaw” in the benefits system.

A potential payment error has been highlighted where workers who claim Universal Credit could be treated as having two monthly wages this month, which in turn could see their benefits docked.

This could happen when employees are paid early for Christmas, resulting in reduced or even zero benefits.

Universal Credit is paid monthly but if a worker is paid early, the Department for Work and Pensions could mistakenly mark this as a second payment.

The issue, highlighted by Advice NI, gives the example of a worker who is usually paid on the last Friday of each month, but gets Universal Credit in between these payments.

This worker would have been paid by their employer on November 29, and is expecting their next salary on December 27.

What to do if you have problems claiming Universal Credit

IF you're experiencing trouble applying for your Universal Credit, or the payments just don't cover costs, here are your options:

Apply for an advance – Claimants are able to get some cash within five days rather than waiting weeks for their first payment. But it's a loan which means the repayments will be automatically deducted from your future Universal Credit pay out.

Alternative Payment Arrangements– If you're falling behind on rent, you or your landlord may be able to apply for an APA which will get your payment sent directly to your landlord. You might also be able to change your payments to get them more frequently, or you can split the payments if you're part of a couple.

Budgeting Advance – You may be able to get help from the government to help with emergency household costs of up to £348 if you're single, £464 if you're part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You'll have to repay the advance through your regular Universal Credit payments. You'll still have to repay the loan, even if you stop claiming for Universal Credit.

Cut your Council Tax – You might be able to get a discount on your Council Tax or be entitled to Discretionary Housing Payments if your payments aren't enough to cover your rent.

Foodbanks – If you're really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the Trussel Trust website.

But because it's Christmas, this worker has actually been paid by their employer early, on December 20th.

If their Universal Credit assessment period includes both these payments – so say it runs from November 24 to December 24 – this could be mistaken as the worker being paid twice.

While the Universal Credit payment will balance out in January, as it will appear claimants have received no payment during their next assessment period, this doesn't help over Christmas.

If you're concerned you could be caught out, debt charity Turn2Us says you can ask your employer to tell HMRC you were paid on your usual day.

Employers send PAYE information to the Universal Credit office each month so the Department for Work and Pensions (DWP) can keep track of what you're earning.

Liam Evans, campaigns officer at Turn2Us, added: “The rigid Universal Credit monthly assessment period is causing chaos for thousands of workers.

“Universal Credit was supposed to make work pay, not leave people completely out of pocket over Christmas, due to something which the DWP could fix very easily.”

Sue Anderson, head of media at StepChange, told The Sun: Once again it appears that Universal Credit is failing people in their time of need. 

"Those left without the money they need over the Christmas period may be forced into borrowing to make up the difference.”

The Sun has contacted DWP.

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Here's how to get extra help this winter if you’re on Universal Credit, from cold weather payments to free NHS prescriptions.

If you're struggling, we explain what a Universal Credit advance payment is, how to apply and when you have to pay it back.

You may also qualify for a Universal Credit Flexible Support Fund payment that you don't have to pay back.

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