People who claim Universal Credit could lose out on cash this weekend, if they get paid early because of the May Bank Holiday.
Employers usually pay their staff early if their usual payment date falls on a bank holiday.
But there could be an issue if you have two monthly salaries fall into one assessment period, as the Universal Credit system will automatically think you’ve gone over your payment threshold for this time - reports Mirror Online.
If you’re employed, the amount you earn has an impact on your Universal Credit payments - for every £1 you earn, your payment reduces by 63p.
Money Saving Expert gives the example of someone who has an assessment period of April 1 to April 30 and is paid a monthly salary on the 3rd of each month.
You would have been paid in early April but then your next pay could be on April 30, as this is the last working day before the May Day bank holiday on May 3.
This then means it looks like you’ve been paid twice in April, when it fact you've just been paid your May salary early.
Keep in mind Universal Credit assessment periods don’t necessarily cover a calendar month, and the issue mentioned above mainly affects those on a monthly salary, although weekly and fortnightly payments can technically be hit too.
The payment error was flagged in the latest Money Saving Expert newsletter with a note that said: "On Universal Credit? Beware a bank holiday payment trap."
If you know you’re being paid early, and it could affect your payments, contact your Department for Work and Pensions (DWP) coach before the bank holiday.
They can then manually update their system so it thinks you were paid the following month.
In the Money Saving Expert guide online, its writers said: “This has been possible since November 2020 but you have to ask for it to be done - it won't happen automatically.”
This fix is currently only available for those on monthly wages, so this means those on weekly or fortnightly salaries will have to budget for any changes.
