People receiving Universal Credit have been warned they could lose out on cash this weekend.
The problem would arise if you are paid early, warns the Money Saving Expert team.
The bank holiday falls on May 3 and employers typically pay their staff early if the payment date falls on this day.
However if you end up having two monthly salaries fall into one assessment period this would be a problem, as the Universal Credit system will automatically think you’ve gone over your payment threshold.
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’re employed, the amount you earn has an impact on your Universal Credit payments - for every £1 you earn, your payment reduces by 63p, the Mirror reports.
Martin Lewis' Money Saving Expert team 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 could 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.
