Universal Credit provides important support to individuals not only who are out of work, but also those who are on a low income. As a result, a wide range of people will be claiming Universal Credit from the Department for Work and Pensions (DWP). The payment can help individuals to manage their finances, and it is often the case many claimants will budget around receiving the benefit.
In this sense, it will be important for certain Universal Credit claimants to check their payslip, as the May bank holiday approaches.
This year, the early May bank holiday falls on Monday, May 3, 2021 - where some people will be given the day off due to business closures.
However, this often means employers can pay staff early if the payday falls on the day of the bank holiday.
In the past, this has impacted Universal Credit payments for some in a very specific way.
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This meant two payslips could effectively fall into one assessment period, and the Universal Credit system read this as a person earning twice as much.
As a result, some saw their Universal Credit payments reduced, impacting their finances.
Last year, Court of Appeal judges deemed this rule to be “irrational”, and said the DWP would have to fix the matter.
At the time, a DWP spokesperson told Express.co.uk: “DWP and HMRC continue to work with employers to make them aware how to correctly report payments for wages using contractual pay dates. We are carefully considering the court’s decision as part of our ongoing work.”
The issue has now been rectified with the DWP ensuring those effectively receiving two pay packets in one assessment period can have their second payment moved to another assessment period.
Baroness Stedman-Scott, DWP Minister, said: “Make sure you know when you will be getting your payments, as many are being made early.”
Those who are due to be paid on Monday, May 3, a bank holiday in England, Scotland and Wales, will now be paid on Friday, April 30.
This is to ensure people receive their payment on time and get the support they need.
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