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Bristol Post
Bristol Post
World
Emma Munbodh & Dave Shepherd

DWP: 85,000 Universal Credit claimants set for rise in winter payments after rule change

The Department for Work and Pensions has addressed an 'unfair' loophole which have costs thousands of Universal Credit claimants thousands of pounds.

More than 85,000 people claiming the benefit will now see their winter payments increase after the Government department closed the loophole, The Mirror reports.

Claimants who are paid twice in a month by their employer will not be penalised in their following payment from next Monday.

Workers who are paid twice each month are flagged as 'over-earning' by the DWP's systems under the current payment rules, which means their following payment is reduced - sometimes to zero - as a result of their 'higher' income.

However, in the majority of cases, they are not actually over-earning. It is often as a result of their employer paying them on the first - or last - working day of the month.

Or, it could be if they received an early or late payment as a result of a bank holiday.

Vulnerable families found themselves without any benefit for a month as a result of the glitch.

In June, four single mums took the case to the Court of Appeal - and won.

A judge concluded the system was "irrational and unfair" and had pushed them into poverty.

The Department for Work and Pensions was ordered to fix the flaw and it has now confirmed the new rules will come into force next Monday - November 16.

And from December the benefits system will only register one payment for each assessment period to prevent people losing out financially.

The changes will only apply to employees who are paid monthly - and will not affect those who are paid weekly or fortnightly.

Peter Tutton, head of policy at StepChange, said: "It is also important DWP continues to seek ways to stabilise payments for those who face similar problems, such as those who are paid weekly or bi-weekly or have an irregular income."

Will Quince, the Minister for Welfare Delivery, said: "Universal Credit is a flexible benefit, and we continue to make changes and improvements to makes sure people have the best experience possible.

"This change will give stability to people if they're paid two pay cheques in a single assessment period, by ensuring that their Universal Credit payments remain consistent."

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