MSE News: Government moves towards new monthly benefit system

edited 30 November -1 at 1:00AM in Benefits & Tax Credits
183 replies 14.5K views
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  • looby75looby75 Forumite
    23.4K Posts
    NASA wrote: »
    Surely even if you are paid twice a month (or so) then that is a risk?

    Not a valid point IMO.
    there is always that risk but the risk is somewhat mitigated if the amount available in your account is small. What if a she has a manic episode a day or so after a whole months benefits payments have landed in her account.

    By their very nature manic episodes can happen at any time and I will admit it's something I hadn't thought about. Maybe there should be an option for people who have mental health issues to "opt out" if they feel they need to.

  • AmesAmes Forumite
    18.5K Posts
    As a claiment I'd be really happy to have my payments monthly. Doing one budget which lasts for months would be brilliant. As it is, I have to do a budget every four weeks, because of DD dates pinging around compared to my payment dates. So, for instance, one 4 weekly period I could have £150 in DDs, the next £100, then back to £150 for a few months, then down to £100....

    Being able to have money go in on, say, the 1st, then all my DDs come out on the 3rd, would be fantastic. It would also reduce the risk (for me) of spending my money before the DDs come out when I'm manic.

    The problem though is that in DWP land, everything is in multiples of two or four weeks. For a DLA type claim, which is for x years, then it's easy enough to divide by 12. For a JSA type claim, which is for two weeks at a time, then you can't have one payment day a month - if you sign on on a Monday, the 1st of the month is going to change day each time.

    There's also the problem that benefit claims would have to be in monthly periods. So, someone losing their job on day 13 of a month is going to have to have a monthly amount worked out daily - which will differ every month - for their first payment.

    Then there's the payment date. Would the DWP pay everyone on a fixed day? Or would it be the monthly anniversary of the date of their claim? The second will be horrendous, as you'd have payments going out every working day, instead of as now where it's every Tuesday/Wednesday/Thursday (depending on the benefit). One payment day would seem easier, but first/last payments need to be calculated by working out a daily rate, which would again be different every month.

    It wouldn't be such a problem for long term claims, but for short stop and starts it'll be a nightmare to administer.
    Unless I say otherwise 'you' means the general you not you specifically.
  • NASA_2NASA_2 Forumite
    5.6K Posts
    looby75 wrote: »
    there is always that risk but the risk is somewhat mitigated if the amount available in your account is small. What if a she has a manic episode a day or so after a whole months benefits payments have landed in her account.

    By their very nature manic episodes can happen at any time and I will admit it's something I hadn't thought about. Maybe there should be an option for people who have mental health issues to "opt out" if they feel they need to.
    Then everyone will do it citing a mental health problem.

    Its a lame argument in my opinion. Again I feel the need to ask the question of what people who work while battling mental illness have to do? They can ask their employer to pay weekly/two weekly but I sincerely doubt that most employers will break their cycle.

    People on benefits have to appreciate that it costs money for a simple money transaction. While some methods cost less than others it still adds up.
  • looby75looby75 Forumite
    23.4K Posts
    NASA wrote: »
    Then everyone will do it citing a mental health problem.

    Its a lame argument in my opinion. Again I feel the need to ask the question of what people who work while battling mental illness have to do? They can ask their employer to pay weekly/two weekly but I sincerely doubt that most employers will break their cycle.

    People on benefits have to appreciate that it costs money for a simple money transaction. While some methods cost less than others it still adds up.
    well I wouldn't for one, as I've already said I would welcome monthly payments.

    If someone who has mental health issues is well enough to work they are most likely to be able to manage finance.

  • lynzpowerlynzpower Forumite
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    I agree that it looks great on paper.

    Im sure for those long term recipients ( ie not active job seekers) it will be fine.

    My OH signed on: 4 weeks later we still have no payment. Next week, he has scored himself a week of work. so when he goes in to "sign on" on his appointment he will sign off and start work the next day.

    However, we have been told its pretty unlikely he will receive money by then. So we have to put his travel on the credit card , luckily we still have a little bit more credit available: others wont. so what will people do? Not take work cos they cant get there? What is VITAL is to get the payments sorted out easier, and quicker. To be able to sign on and get the subsidence quickly. Its impossible to budget with no income.

    Would it be worse with monthly payment cycles? I would imagine so.

    The government needs to get its payments system sorted as i can certainly identify with the idea that people wouldnt want to sign off for a couple of days work then sign back on again.

    I am also alarmed at the removal of crisis loans. I think this is just a terrible idea.
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
  • MorglinMorglin Forumite
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    I think they intend to pay 4 weekly, not actually monthly.

    Most benefits are paid this way now, so I can't see it would cause that many problems.

    There is also a scheme for those in hardship who can still elect to be paid weekly, if you request it, and show cause, and this will hopefully continue.

    Lin :)
    You can tell a lot about a woman by her hands..........for instance, if they are placed around your throat, she's probably slightly upset. ;)
  • elvis86elvis86 Forumite
    1.4K Posts
    I'm !!!!ed if i have a manic episode at the end of the month. I'll most likely end up spending it and have nothing to live on for the rest of the month. I'm going to have to give my cash card to my flatmate or something

    This has to be the worst argument yet!

    "What if I get my month's benefits on Tuesday, pass those gorgeous shoes in Harvey Nicks' window on Wednesday and can't resist blowing the lot on them..?" ...Um, you and your kids starve because of your irresponsibility, I guess.

    Anyone who finds themselves on benefits should be grateful to receive them, not dictating when and how they want them paid! Jeeez! Some people really have lost the plot, this "entitlement culture" is sickening.

    As other's have said, with utilities, loans, phone bills etc all generally paid monthly, it makes more sense to pay benefits monthly too? If it costs the taxpayer less in admin costs/costs associated with making the payments, then all the better IMO.

    It's about time we stopped mollycoddling benefit recipients. It's unhelpful to those who are useless and need a kick up the backside, but (as claimants have said above) it's equally insulting to those who are perfectly capable of managing their money!

    I say bring everything in line with the real world. Ie monthly. Most working people are paid monthly, we should pay benefits monthly too. Working people's mortgages/rent are paid monthly, why shouldn't people in council housing pay monthly too?
  • looby75looby75 Forumite
    23.4K Posts
    elvis86 wrote: »
    This has to be the worst argument yet!

    "What if I get my month's benefits on Tuesday, pass those gorgeous shoes in Harvey Nicks' window on Wednesday and can't resist blowing the lot on them..?" ...Um, you and your kids starve because of your irresponsibility, I guess.

    Anyone who finds themselves on benefits should be grateful to receive them, not dictating when and how they want them paid! Jeeez! Some people really have lost the plot, this "entitlement culture" is sickening.

    As other's have said, with utilities, loans, phone bills etc all generally paid monthly, it makes more sense to pay benefits monthly too? If it costs the taxpayer less in admin costs/costs associated with making the payments, then all the better IMO.

    It's about time we stopped mollycoddling benefit recipients. It's unhelpful to those who are useless and need a kick up the backside, but (as claimants have said above) it's equally insulting to those who are perfectly capable of managing their money!
    I think you are being very unfair on Messedup. She's not saying she has no will power she's saying that if she has a manic episode then she would spend all her money.

    She's got a mental health condition that means at times she's incapable of thinking rationally, she's not acting irresponsibly she can't help it! At the time it would seem like the most sensible and natural thing in the world to blow all your money.


    Telling someone who has serious mental health problems to just manage and that they need a kick up the backside is like telling someone who is paralysed that if they think about it hard enough and you kick them up the backside they will be able to walk

    I was 100% in favour of benefits being paid monthly until MessedUp gave an example of how it could cause problems for someone who has manic phases.

  • NASA_2NASA_2 Forumite
    5.6K Posts
    Manic episodes are going to cause problems whether the person is monthly or weekly paid.
  • Monthly pay is a pain in the backside for many. Especially those without any form of credit.

    Most people on monthly pay use credit cards or overdrafts to tie them over til the next payday as in many cases there is always an unexpected bill or cost of some sort.

    Maybe they should make credit compulsary then!!!!
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