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100,000 people on universal credit will not receive a payment at Christmas | 100,000 people on universal credit will not receive a payment at Christmas |
(about 4 hours later) | |
At least 100,000 low-paid people on universal credit will receive no payment at Christmas, in a fresh controversy about the new benefit. | At least 100,000 low-paid people on universal credit will receive no payment at Christmas, in a fresh controversy about the new benefit. |
The claimants will be hit because they are paid weekly and their income “will likely go over the universal credit limit”, officials say. | The claimants will be hit because they are paid weekly and their income “will likely go over the universal credit limit”, officials say. |
They will be able to reapply in January – but, it is feared, will be left without money over the Christmas and New Year period. | They will be able to reapply in January – but, it is feared, will be left without money over the Christmas and New Year period. |
The same problem will re-occur in other months which, like December, have five paydays, because universal credit is calculated on a monthly basis. | The same problem will re-occur in other months which, like December, have five paydays, because universal credit is calculated on a monthly basis. |
“It sounds like nonsense doesn’t it? A script from a political farce. But no, it’s actually what’s happening,” said one worried claimant on the Mumsnet website. | |
The controversy comes just two days before a Government minister faces being hauled back to the Commons after MPs ordered a cut to separate long delays to universal credit payments. | The controversy comes just two days before a Government minister faces being hauled back to the Commons after MPs ordered a cut to separate long delays to universal credit payments. |
Meanwhile, some Conservatives are calling for tax cuts for the better off to be shelved to ease the plight of claimants set to lose thousands of pounds. | Meanwhile, some Conservatives are calling for tax cuts for the better off to be shelved to ease the plight of claimants set to lose thousands of pounds. |
Around 250,000 people receiving universal credit are in low-paid work, of which 47 per cent – more than 100,000 – are paid weekly. | |
Their earnings are topped up by the benefit, which is gradually being introduced around the country, merging six existing working-age benefits. | Their earnings are topped up by the benefit, which is gradually being introduced around the country, merging six existing working-age benefits. |
Official guidance states: “If you’re paid weekly by your employer, you will get either four or five payments of earnings within a universal credit assessment period. | |
“When you have five weekly earnings payments within an assessment period, your income may be too high to qualify for universal credit in that month. | |
“You can re-apply the following month as you should only get four wage payments in your assessment period then.” | |
Claimants are advised to “budget for a potential change”, but critics argue this ignores the reality facing many lower-paid people used to receiving payments weekly. | Claimants are advised to “budget for a potential change”, but critics argue this ignores the reality facing many lower-paid people used to receiving payments weekly. |
They will have to sign back onto universal credit online, which is not always easy for those without ready access to the internet over the festive period. | |
On Thursday, MPs voted unanimously to slash the wait for a first payment from six weeks to four, after the Government refused to contest the controversy – knowing defeat was inevitable. | On Thursday, MPs voted unanimously to slash the wait for a first payment from six weeks to four, after the Government refused to contest the controversy – knowing defeat was inevitable. |
Conservative MPs joined with the opposition parties in pleading for an urgent rethink, amid the evidence of mounting problems. | Conservative MPs joined with the opposition parties in pleading for an urgent rethink, amid the evidence of mounting problems. |
Food bank organisers have ordered an extra 2,000 tonnes of food, to prepare for more people going hungry after moving onto universal credit, the Government was told. | |
There were also protests over cuts to the “work allowance” – the amount of earnings kept before claimants’ lose benefits – which has swiped more than £1,200 a year from many families. | There were also protests over cuts to the “work allowance” – the amount of earnings kept before claimants’ lose benefits – which has swiped more than £1,200 a year from many families. |
An angry Frank Field, the Labour chairman of the Work and Pensions Committee, demanded that ministers explain, on Monday, how they intend to abide by the will of the Commons. | An angry Frank Field, the Labour chairman of the Work and Pensions Committee, demanded that ministers explain, on Monday, how they intend to abide by the will of the Commons. |
“The whole House has unanimously asked the Government to move. That’s what I want the Secretary of State to address on Monday,” Mr Field added. | “The whole House has unanimously asked the Government to move. That’s what I want the Secretary of State to address on Monday,” Mr Field added. |
A climbdown is widely expected before next Wednesday’s Budget, but only a cut to a five-week wait – which would not satisfy the motion passed. | A climbdown is widely expected before next Wednesday’s Budget, but only a cut to a five-week wait – which would not satisfy the motion passed. |