Debbie Abrahams – 2016 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Debbie Abrahams on 2016-07-20.

To ask the Secretary of State for Work and Pensions, what estimate he has made of the average loss incurred by people in receipt of Universal Credit who are in regular employment and paid every four weeks and receive two sets of earnings in one assessment period compared with claimants with the same annual income who are paid monthly with one set of earnings in each assessment period since the roll-out of the digital service.

Damian Hinds

The specific information requested could only be obtained at a disproportionate cost.

Unlike tax credits which meant that claimants received demands for repayments and could never be sure they were receiving the correct entitlement, Universal Credit assesses monthly earnings and income in that month. That lessens the burden on claimants who have fluctuating incomes or irregular payments so they can budget with greater confidence and without the anxiety they will be hit with a demand for repayment.

We are currently implementing a test and learn approach to understand the interaction of Universal Credit and employer pay cycles and its effect on awards. This work will include discussions with employers.