Universal Credit loophole to be closed next week – thousands will see their payments rise
Universal Credit claimants in some instances may get paid twice a month from their employment and under current rules, this could be flagged as “over-earning” on the DWPs systems. Because of this apparent over-earning, the following payment may be unfairly reduced.
This can happen due to an employer paying the on the first or last working day of the month, or because an early payment has come through due to a bank holiday.
Reportedly, this affects around 85,000 claimants but the DWP has announced plans to rectify the problem.
From November 16, the loophole will be closed and thousands of claimants will see their payments rise.
Under current rules, Universal Credit payments will be gradually reduced the more a claimant earns from employment.
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As a person’s employment income increase, their Universal Credit Payment will reduce until they no longer receive it at all.
If employment earnings decrease again, they’ll be able to reclaim Universal Credit.
Should a person’s monthly earnings be higher than £2,500 over the amount where payments stopped, it will become surplus earnings.
Surplus earnings will be carried forward to the following month and will count towards regular earnings levels.
Once this surplus is once, Universal Credit payments will be able to come through again.
Universal Credit payments themselves will vary from person to person as they can be affected by various living circumstances.
Extra amounts will be awarded to those who have children, have a disability or health condition or need help paying their rent.
However, despite this variation there are standard allowances in place which everyone will receive as a minimum.
These standard allowances are based on a claimant’s age and relationship status and are as follows:
- Single and under 25 – £342.72 per month
- Singe and 25 or over – £409.89 per month
- In a couple and both are under 25 – £488.59 (for both)
- In a couple and either are 25 or over – £594.04 (for both)
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