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Universal Credit claimant misses out on extra £326 because of system quirk | Personal Finance | Finance

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Some low income employees on the DWP payment didn’t get the additional £326 consequently of their profit entitlement being removed in the course of the eligibility period for the support. Earlier this yr, then-Chancellor Rishi Sunak announced a value of living payment value £650 for those on means-tested advantages, including Universal Credit. The primary instalment of this support, a payment of £326, has been rolled out to profit claimants over the past month but some have missed out on.

To receive this cost of living payment, a recipient will need to have been eligible for Universal Credit during an assessment period between April 26 and May 25.

Ahead of the announcement of this support, the Government warned that individuals won’t have the ability to assert the additional £326 if their earnings reduce their Universal Credit entitlement to zero. For each £1 someone earns, a Universal Credit claimant’s payment drops by 55p.

If someone were to be paid more cash than they normally get during an assessment period, they risk losing their entire Universal Credit claim.

With many profit claimants getting paid weekly in low income jobs, this could often be common.

READ MORE: State pension set to rise next yr but 520,000 people will miss out

Throughout the qualifying assessment period for the fee of living payment, some employees had their Universal Credit claim based on five weeks’ pay which meant they got nothing for that month.

A consequence of this was that they weren’t capable of get the £326 cost of living payment being offered by the Government.

Talking to The Guardian, IT apprentice David Evans shared how the error has affected his ability to pay for essential utility bills.

The 55-year old said: “I used to be going to make use of it to load up my gas meter, get ahead on my electricity and replenish the freezer.

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“I receive about £140 within the months I’m entitled to a payment. Although the number of individuals paid weekly isn’t a high percentage of the UK labour force, they’re the lowest-paid and can be claiming advantages to extend their income.

“An honest variety of those people, and a few of those paid four-weekly, may have been prone to not getting this money.”

A supermarket employee, who selected to stay anonymous, discussed how she had been impacted by the payroll issue.

She explained: “I work at a big supermarket and am paid every 4 weeks. I’m also on Universal Credit and, by a probability of the calendar, had two paydays in April.

“This meant I got nothing that month. I used to be still on Universal Credit, I just got zero kilos.

“My assessment period ran from 1 to 30 April, so I won’t get the payment simply because I’m paid four-weekly, not monthly.

“It should be affecting lots of people like me. It’s so unfair and upsetting. We’re assessed to want extra help but are then arbitrarily not helped.”

Talking to Express.co.uk, a DWP spokesperson said: “The overwhelming majority of existing recipients of Universal Credit will qualify for a Cost of Living payment but inevitably a small number can be ineligible on the qualification dates due to a change of income, earnings or other circumstance.

“Earnings patterns can vary substantially and it will be not possible to decide on qualifying dates that work for each single person on Universal Credit.

“Nonetheless autumn’s second qualifying date reduces the danger that those with non-monthly pay periods that were ineligible for the primary payment, miss out altogether.

“For any individuals that aren’t eligible for this support, or for families that need additional support, the Government is providing a further £500 million to assist vulnerable households and from October 2022, domestic electricity customers will receive a £400 discount on their bills.”

The remaining £324 of the larger cost of living payment can be delivered to Universal Credit later this yr.

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