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Chronicle Live
Chronicle Live
National
Paige Freshwater & Sonia Sharma & Emma Munbodh

Thousands of people on Universal Credit set to see their winter payments rise

More than 85,000 people who claim Universal Credit will see their winter payments rise after the Department for Work and Pensions fixed an "unfair" loophole.

From Monday, claimants who are paid twice in a month by their employer will not be penalised in their following payment.

Current rules mean workers who are paid twice each month are flagged as 'over-earning' by the DWP's systems, Grimsby Live reports.

This 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 if they received an early or late payment as a result of a bank holiday.

As a result of the glitch, vulnerable families found themselves without any benefit for a month.

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

Danielle said she had experienced 'significant fluctuations' in her benefit income due to a clash between her paydays and the DWP's fixed monthly Universal Credit assessment periods.

Between them, the group of four, fell into rent arrears and defaulted on council tax payments while incurring bank overdraft charges.

They were forced to borrow money and rely on food banks to get by.

DWP Christmas 2020 payment dates - Universal Credit, PIP, and Child Benefit

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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