O/T Universal credit
Sun Mar 10, 2013 8:26 pm
Universal credit (UC),which begins replacing other benefits from October this year, is to be paid monthly in arrears. Secondly, awards will be based on a monthly assessment of a claimant’s circumstances. This represents a radical change from the current situation which provides for fortnightly payments of income support, JSA and ESA, weekly or 4 weekly payments of tax credits; weekly,fortnightly or monthly payments of housing benefit; and the immediate adjustment of awards on changes of circumstances in most cases. However the new causes concern because:
Monthly payments
The government proposes to pay UC monthly in arrears. Claimants will be allocated a pay day 7 days after the end of their initial assessment period and subsequent pay days will be on the same day of each following month (if they fall on a weekend or bank holiday, they will be ADVANCED to the nearest working day). Payment will therefore be made per calendar month and will not be varied to reflect the number of days in the month.
For Example
Claimant claims UC on 14 October 2013. The initial assessment period runs until and including 13 November. Payment will be made on 20 November and the 20th of each subsequent month in arrears.
It is feared that it could result in hardship for some of the poorest and most vulnerable claimants. The government is proposing to put safe-guards in place to support claimants who may struggle to cope with monthly payments. Firstly, there will be a system of short-term advances (‘payments on account’) for those who run out of money before they are paid UC.The problem is that the advance payments are loans which are recovered by deductions from on-going awards of UC, making it more likely that claimants will run out of money again in the subsequent assessment period.
Monthly assessments have not really attracted media attention yet, but it not only means that claimants will have to wait up to a month for an award to be changed to reflect a change in circumstances, but also that any change is treated as occurring from the beginning of the month, regardless of when it actually occurred.
Example:
Claimant’s entitlement to UC ends 4 weeks into his assessment period – eg, because he receives income from a job. He will receive no UC for the whole month.The new arrangement opens up the prospect of claimants and advisers trying to plan the most advantageous time to effect changes of circumstances in order to maximise entitlement, and could result in some very rough justice.
The change to monthly awards is likely to have significant implications for many claimants. Monthly payments will not only mean that most people will have to effectively wait a month before getting any benefit but will be tempted to defer notification of changes for fear of losing a months benefit. The housing benefit will also be paid a month in arrears so budgeting on an already stretched purse string to find the additional 2 weeks rent and bill money will be incredibly difficult for most people. We have yet to see what help is going to be given those with mental health problems. CCFC
Monthly payments
The government proposes to pay UC monthly in arrears. Claimants will be allocated a pay day 7 days after the end of their initial assessment period and subsequent pay days will be on the same day of each following month (if they fall on a weekend or bank holiday, they will be ADVANCED to the nearest working day). Payment will therefore be made per calendar month and will not be varied to reflect the number of days in the month.
For Example
Claimant claims UC on 14 October 2013. The initial assessment period runs until and including 13 November. Payment will be made on 20 November and the 20th of each subsequent month in arrears.
It is feared that it could result in hardship for some of the poorest and most vulnerable claimants. The government is proposing to put safe-guards in place to support claimants who may struggle to cope with monthly payments. Firstly, there will be a system of short-term advances (‘payments on account’) for those who run out of money before they are paid UC.The problem is that the advance payments are loans which are recovered by deductions from on-going awards of UC, making it more likely that claimants will run out of money again in the subsequent assessment period.
Monthly assessments have not really attracted media attention yet, but it not only means that claimants will have to wait up to a month for an award to be changed to reflect a change in circumstances, but also that any change is treated as occurring from the beginning of the month, regardless of when it actually occurred.
Example:
Claimant’s entitlement to UC ends 4 weeks into his assessment period – eg, because he receives income from a job. He will receive no UC for the whole month.The new arrangement opens up the prospect of claimants and advisers trying to plan the most advantageous time to effect changes of circumstances in order to maximise entitlement, and could result in some very rough justice.
The change to monthly awards is likely to have significant implications for many claimants. Monthly payments will not only mean that most people will have to effectively wait a month before getting any benefit but will be tempted to defer notification of changes for fear of losing a months benefit. The housing benefit will also be paid a month in arrears so budgeting on an already stretched purse string to find the additional 2 weeks rent and bill money will be incredibly difficult for most people. We have yet to see what help is going to be given those with mental health problems. CCFC