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

PhiltheBear

seven-day-weekend wrote: »

But say you borrow £50 from the loan - well that £50 will be in your benefit when you get it so I can't see that anyone will be worse off. You should be able to pay it back straight away - it should make no difference to your budget. (Assuming the loan is interest-free?).

As I understand it (more or less)
- you are paid weekly in advance.
So, for the first week of the month you are paid on day 1.

It now changes to a fortnight in arrears.
You will now be paid on day 14.

So, you get a loan to cover days 1-14 - which you pay back when your benefit arrives.

Now, can one of the 'it doesn't make a difference' people explain to me what you now live on from day 15-28? Do you get another loan? Or are you supposed to half your outgoings for this 4 week period. Because, no matter how you look at it, you aren't going to have the money until after you are supposed to have spent it.

seven-day-weekend

But I don't think they have to pay it back straight away - someone mentioned £5 out of the Benefits money until it is paid.

DeeDee74

hiya got my letter today to say mine changes on the 2nd june.
heres how thay worked mine out,

14/5/09..weekly benefit £18.48 for 08/05/09- 14/05/09
21/05?09 5days benefit? £28.79 for 15/05/09- 19/05/09
02/06/09 fornightly benefit £36.96 for 20/05/09- 02/06/09.
thay offered me a loan of £18.48 recovering £3.08 a fornight.

bestpud

Here's mine:

Your new pay week-ending day based on your NI no will be Thursday and payment of your benefit will be made each fortnight starting Thursday 14th May.

As your pay week-ending day is moving from Monday to Thursday we will owe you 3 days benefit. This will be paid to you as explained below:

Due Monday 27/04/09 weekly benefit for 21/04/09-27/04/09 - £normal weekly benefit
Due Monday 04/05/09 3 days benefit for 28/04/09-30/04/09 - 3 days worth
Due Thursday 14/05/09 fortnightly payment for 01/05/09-14/05/09 £weekly benefit x2

To help you manage through the chage you can apply for a loan of [one weeks benefit]. No interest will be charged. If you apply immediately this will be paid on or before Monday 4th May.

You are required to pay this money back over 6 fortnightly payments; we will recover it from your benefit at [1/6th of my weekly benefit] per fortnight starting on Thursday 28th May. We will not charge you any interest on this loan.

I hope that helps clear the confusion up.

bestpud

PhiltheBear wrote: »

As I understand it (more or less)
- you are paid weekly in advance.
So, for the first week of the month you are paid on day 1.

It now changes to a fortnight in arrears.
You will now be paid on day 14.

So, you get a loan to cover days 1-14 - which you pay back when your benefit arrives.

Now, can one of the 'it doesn't make a difference' people explain to me what you now live on from day 15-28? Do you get another loan? Or are you supposed to half your outgoings for this 4 week period. Because, no matter how you look at it, you aren't going to have the money until after you are supposed to have spent it.

Please note: Benefits were previously paid one week in arrears, not one week in advance, so the difference is only one week!

I hope my post above helps explain how it works.

sunnyone

I dont object to the changes in general but I do believe that everyone affected should be given reasonable notice and the DWP are very bad at sending letters before any changes.

sunnyone

PhiltheBear

bestpud wrote: »

Please note: Benefits were previously paid one week in arrears, not one week in advance, so the difference is only one week!

I hope my post above helps explain how it works.

I'm afraid that the Government doesn't agree with you.

From the pdf on the Jobcentre Site: "you are currently paid weekly in advance this means you are paid for the week following your pay week-ending day. Following the introduction of the changes, you will be paid weekly in arrears,"

From the same document: "Note: Jobseeker’s Allowance customers will not receive letters..."

NOTE: Different things apply to different benefits. The link you need to read it is here: http://www.jobcentreplus.gov.uk/JCP/stellent/groups/jcp/documents/websitecontent/dev_016121.pdf

It is, naturally, a pretty dense document which doesn't add instant clarity.

bestpud

PhiltheBear wrote: »

I'm afraid that the Government doesn't agree with you.

From the pdf on the Jobcentre Site: "you are currently paid weekly in advance this means you are paid for the week following your pay week-ending day. Following the introduction of the changes, you will be paid weekly in arrears,"

From the same document: "Note: Jobseeker’s Allowance customers will not receive letters..."

NOTE: Different things apply to different benefits. The link you need to read it is here: http://www.jobcentreplus.gov.uk/JCP/stellent/groups/jcp/documents/websitecontent/dev_016121.pdf

It is, naturally, a pretty dense document which doesn't add instant clarity.

I can assure you my IS is paid weekly in arrears, as my payment schedule posted above shows.

Note the first normal payment is paid on the 27th and covers the 20th-27th.

JSA claimers are already paid fortnightly in arrears and that is wy it will not affect them.

If you read it correctly, the people paid in advance are those receiving IS PLUS another benefit!!

If you are receiving Bereavement Benefit, Widows Benefit or you receive Income Support as well as Bereavement or Widows Benefit, you are currently paid weekly in advance this means you are paid for the week following your pay week-ending day. Following the introduction of the changes, you will be paid weekly in arrears, which means you are paid for the week leading up to your pay week-ending day.

And another quote form the same document:

If you receive Income Support paid in advance
If your Income Support is paid in advance because of another benefit which is also paid in advance (usually Bereavement Benefit or Widows Benefit) your benefit award will be converted to weekly payments in arrears.

It might be 'a pretty dense document' by your standards but it is quite clear if you read it properly!

NASA_2

It will affect JSA customers unless they are already on the pay day their National Insurance Number dictates ie. someone could be on a week 1 Monday pay day but their number dictates it should be a week 2 Friday.

bestpud

ESA wrote: »

It will affect JSA customers unless they are already on the pay day their National Insurance Number dictates ie. someone could be on a week 1 Monday pay day but their number dictates it should be a week 2 Friday.

Ah right, ok.

Thanks for explaining.