Universal Credit
The question
To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential impact of four-weekly employer pay cycles on the (a) calculation and (b) consistency of Universal Credit payments.
Answered by Sir Stephen Timms
Those who are paid their earnings four-weekly will normally get one payment in each monthly assessment period and will have one assessment period a year where they will receive two four-weekly payments. This is because there are 12 assessment periods a year and those who are paid four-weekly will receive 13 payments a year. This means for 11 assessment periods entitlement to Universal Credit should be the same and in the other assessment period entitlement will be reduced or end because of the higher amount earnings received in that assessment period. The proportion of Universal Credit claimants in work who are paid their wages 4-weekly by their employer are 10% (excluding self-employed people).
The Department has committed to reviewing Universal Credit, to make sure it is doing the job we want it to, to make work pay and tackle poverty. We know that UC’s monthly assessment period doesn’t suit household circumstances in all cases. We are meeting with expert stakeholders to explore this as part of the review
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