Warning! Big benefit payments shake-up: frequency and pay-day will change for most

SuziQ

I have posted elsewhere that the change to 2 weekly stopped my payments completely-I didn't realise until almost 6 weeks I had had no IS as I have been ill and had built up a fair bit of credit in my account,so luckily didn't go overdrawn. When I chased it up I was offered no explanation or aplogy,just a slight admonishment for not noticing sooner (I was asked 'don't you need this money then!') Today I recieved a letter stating that 'despite my change in circumstances' my payments would stay the same-my only change in circumstances was that my IS stopped without reason!

djpleasure

a friend of mine has just had his changed, from payment day of thursday to friday, weeklyb to fortnightly. It is bang out of order that you have no choice other than to agree a loan to cover you, with payments back at high rate over a short time, forcing you into debt.

KimYeovil

djpleasure wrote: »

a friend of mine has just had his changed, from payment day of thursday to friday, weeklyb to fortnightly. It is bang out of order that you have no choice other than to agree a loan to cover you, with payments back at high rate over a short time, forcing you into debt.

You do have a choice - don't accept the loan and use your savings for a week. You are not being forced into debt.

djpleasure

you are being forced into debt if you do not have any savings which is common for a lot of people on benefits. Please dont yada yada about budgeting, for some this is not possible to budget and save, due to many circumstances, from outstanding debts which have to be paid to other issues. What with the timing, bill increases by gas/electric meters needing more top up due to weather etc amongst other things. They could have handled this much better. It is difficult to manage on low income as it is. I can fully understand my pals concerns, he is also ill, disabled and suffers mental health, the benefits people do not take this into consideration. people on benefits are treated badly at times, some have worked most of their lives, put a lot of money into the system, via tax etc, only to be treated like a ponce. Trust me, if he could manage without the loan, he would do, but it is just not possible, so is forced into this situation.

seven-day-weekend

I appreciate your point about not being able to save when you live on Benefits, but what is wrong with the loan? As I see it, it works like this:

1. Your money does not come the day it always has - say £100
2. You borrow £50 to get by.
3. Next week your money comes in as normal (two weeks, £200). You only need £150 as you already have had £50, so you can pay it back straight away.

Is there a problem here, or have I missed it?

robpw2

KimYeovil wrote: »

You do have a choice - don't accept the loan and use your savings for a week. You are not being forced into debt.

what if you dont have savings most people on benefits dont ?

djpleasure

his repayments will be £20 out of each payment for so many weeks, this he cannot afford, a lower rate would have been better, as stated he suffers mental health, got into a panick, signed for the loan and sent.

Jaks

seven-day-weekend wrote: »

I appreciate your point about not being able to save when you live on Benefits, but what is wrong with the loan? As I see it, it works like this:

1. Your money does not come the day it always has - say £100
2. You borrow £50 to get by.
3. Next week your money comes in as normal (two weeks, £200). You only need £150 as you already have had £50, so you can pay it back straight away.

Is there a problem here, or have I missed it?

The problem with point number three is that the money has to last until you get paid in two weeks time.

We are going through this at the moment and are lucky enough not to have to pay for any utility bills this week except tv licence, and do our weekly food shopping.

We last go paid last wednesday at the normal amount and we will get paid this wednesday but only for 1 days worth of benefits for we are changing to fortnightly payments from 10th December. We were offered the loan and we would have had to pay it back at £50 a fortnight, but we chose not to take up the option of the loan. The money we get on the 10th December will have to last until 24th December as thats our next payday.

We used to get paid weekly in arrears. now its fornightly in arrears.

Its a pity they couldn't make the changes early next year to save people worrying about affording to live over christmas.

What I have done to make things easier is to pretend that we still get our benefits weekly as that is they way we have always worked out the household budget.

preciousillusions

I've had two different letters a month apart giving me different dates for when my incapacity payments change from a monday pay date (which i in fact usually get the previous Friday) to a Tuesday, and also for when i will get paid the extra one day they will owe me.

I am not bothered by the change but now with these two conflicting letters i am so confused! No idea if i am getting paid this coming Friday/next Mon, or next Tuesday. As the first letter said the change was happening this payment-period and the second says it will begin with my payment in fortnights time :huh:. I don't know whether to call them to check or just wait till Friday and see what happens. It seems they haven't really got a clue what they are doing tbh. Baffled!

Retrovertigo

I have just found out today how much of a mess this could cause for people. Like preciousillusions above, I originally had a letter with one set of dates for the changeover, and then another sent a month later with different dates again.

Today was supposed to be the first day of being paid fortnightly, but on going to the post office, there was only one days money in my account from the changeover day last week.

I called the benefits office and was told many people had been calling because no money was paid.

It turns out they have set me up for 3 weeks money next week instead, and it can't be changed. They did offer me a crisis loan - or rather offered me a phone number to call. But only with the promise of the money hopefully being paid this afternoon.

As I have direct debits due in the next few days - and possibly today, I had to decline it and ask my aunt for a loan until next week, as I need to get the money in today with it being Friday. Couldn't risk the loan not going in until Mon/Tues.

The lady I spoke to was very nice, and was trying to explain it away with it possibly being a bank holiday last Friday.

I'm still obviously slightly nervous now about going to the post office next week and maybe finding no money again. She did reassure me that yesterday I was authorised money for next week, and the amount was correct. But it will be a tense week waiting again