MSE News: Government moves towards new monthly benefit system 13 September 2011 at 3:29PM in Benefits & tax credits 183 replies 14.5K views

Former_MSE_Helen

This is the discussion thread for the following MSE News Story:

"Many benefits are to be paid less frequently, in a move ministers say will better prepare jobless claimants for work ..."

Read the full story:
Government moves towards new monthly benefit system

System

This will take some getting used to, i'm used to getting mine every 2 weeks, its easier for me to cope with budgeting for 2 weeks instead of 4

[Deleted User]

I think this is good thing. I get Monthly wages, but weekly tax credits, 4 weekly Child Benefit and Monthly Housing Benefit. Prior to April Housing benefit was paid 4 weekly this was a nightmare for Monthly rent as I always had a shortfall and sometime got paid middle of the Month. I have said for a long time they need to do away with 4 weekly and get Monthly like everything else in the World.

Jojo_the_Tightfisted

How would this work, when benefits entitlements are generally calculated on a weekly basis? And what of the five week month, bane of the employed masses? It would be a logistical nightmare, to qualify for benefits for, say two weeks, get a payment and then have to wait another five weeks for the next one.

Another thing that is a nightmare when you start a new job is where you miss the payroll run for that month through the action/inaction of someone else. Then you can end up going six weeks without any income. What would be the cutoff date for any claims? Can you imagine if it has to be a full month's entitlement before a payment can be requested, then another month before the actual payment is made?

Gemmzie

I agree with Jojo, this becomes very difficult at the start and end of claims, and at the end of tax years when things inevitably change.

I can see the rational, but the new benefit would have to be based on a monthly figure - in which case, is that 28-31 actual days or 20-25 working days as most weekly benefits are calculated over five working days. This makes it very complicated to work out entitlement which will surely lead to more needy not claiming and more overpayment confusion!

cepheus

I guess the payday loan people must be funding the Tories. This will surely spiral many claimants into debt.

Bizzare because I had an idea of paying them MORE frequently, how much does a pre-programmed electronic transfer cost?

Chorlie

Gemmzie wrote: »

I agree with Jojo, this becomes very difficult at the start and end of claims, and at the end of tax years when things inevitably change.

I can see the rational, but the new benefit would have to be based on a monthly figure - in which case, is that 28-31 actual days or 20-25 working days as most weekly benefits are calculated over five working days. This makes it very complicated to work out entitlement which will surely lead to more needy not claiming and more overpayment confusion!

I'd guess it would work the same as anyone in employment getting paid monthly; in that case you get either a year amount divided by 12 or an hourly amount times by the number of hours a week, times by 52 and again divided by 12.

So if it's a:

Weekly allowance it's times 52 and divided by 12
Fortnightly it's times by 26 and divided by 12
4 weekly it's times by 13 and divided by 12
And if already monthly it's stays the same.

I think it's a great idea, I get my pension monthly, my DLA every 4 weeks and my ESA fortnightly; I have money coming to my A/c though out the month which makes budgeting hard, I'd like all my allowances to be paid in one credit monthly, that way I know on 'X' date I will have a set amount crediting my A/c.

FATBALLZ

Jojo_the_Tightfisted wrote: »

How would this work, when benefits entitlements are generally calculated on a weekly basis??

Primary school level maths can be applied to resolve the problem.

I'm sure lots of people will whinge about this purely technical change, usually the same people who whinge about any government change to benefits (apart from above inflation increases to them). But managing money over a month is a simple and basic life skill that people should be able to do - and the government has an obligation to keep the system modern and cost effective. Those who can't handle the change should probably be in an institution anyway.

seven-day-weekend

We have my husband's Teachers' pension monthly, his Incapacity Benefit four-weekly and my State Pension weekly (that was my choice though).

I actually can't see what the problem is in having them monthly, other than the initial change-over period.

CandyApocalypse

We get our housing benefit and income support fortnightly, but I would have no problem switching to monthly payments. In fact, I would prefer it as I could pay all my bills in one go without having to work out which to pay on which week.

My only concern would be the switch over period.

Mind you, it's hopefully not going to be a problem for us as I am about to become a student, and MrCA will fingers crossed get one of the jobs he has an interview for.

seven-day-weekend

CandyApocalypse wrote: »

We get our housing benefit and income support fortnightly, but I would have no problem switching to monthly payments. In fact, I would prefer it as I could pay all my bills in one go without having to work out which to pay on which week.

My only concern would be the switch over period.

Mind you, it's hopefully not going to be a problem for us as I am about to become a student, and MrCA will fingers crossed get one of the jobs he has an interview for.

Good luck!