Changing benefits to monthly payments - why is it a problem?

[Deleted User]

BigAunty wrote: »

Most wages are paid monthly in arrears...

and most wages are substantially higher than most benefits

krisskross

woodbine wrote: »

and most wages are substantially higher than most benefits

They are not when you include free rent and council tax in the benefits, plus amazing amounts paid for children of non workers and free school meals, free prescriptions for the adults etc

I know a couple of families that don't have equivalent disposable income after housing and commuting costs to those households with the same number of children where no one works.

BigAunty

woodbine wrote: »

and most wages are substantially higher than most benefits

and there are many working poor whose monthly wages are topped up with benefits, or not, and who sometimes have less disposable income than claimants for a variety of reasons (including things like the cost of transport to work, childcare when they they work or mortgage payments if they don't rent so don't qualify for HB)

- how do they cope with a mix of weekly, fortnight and monthly payments across their pay and benefits...

BigAunty

Is it possible that benefits which are paid fortnightly get blown in the first few days of this period or do claimants suddenly achieve this behaviour if it switches to a less regular payment cycle...?

24skins

Would the proposed payments be calendar-monthly (like wages) or 4-weekly, like some benefits are now? My son gets DLA "monthly" but I'm pretty sure he receives 13 payments a year, whereas I only get 12 wage packets.

Just wondering...

only_mee

DLA is 4 weekly

Mrs_Arcanum

24skins wrote: »

Would the proposed payments be calendar-monthly (like wages) or 4-weekly, like some benefits are now? My son gets DLA "monthly" but I'm pretty sure he receives 13 payments a year, whereas I only get 12 wage packets.

Just wondering...

From the benefit training we have had Universal Credit is set to be monthly (12 payments a year). All current benefits are to be migrated to this monthly payment by 2017.

fawd1

seven-day-weekend wrote: »

I understand what people have said about budgeting and this only working if the bill comes after you have budgetted for it.

But.....you now have in a week (say) £50 for food and gas/electricity. You put £15 in the meters and have £35 left for food etc. until your next payment comes in a week's time.

Your pay changes to fortnightly. You now have £100 for two weeks. You put £30 in the meters and have £70 left for food etc until your next payment in two week's time.

Your pay changes to monthly (or more likely four-weekly). You have £200 for four weeks. You put £60 in the meters and have £140 left for food etc until your next payment in four weeks or a month's time. So you split the £140 up into four and have £35 a week left, exactly the same as you had when it was paid weekly.

The problem may come with the initial change-over, but after this there is no reason at all why it should not run smoothly.

I think some sort of help/leeway is needed for the changeover but after that I don't see why there need be a problem, other than with those people who will always need help, no matter how often they have their money.

This, in theory, should be exactly how it would work. The problem is this, benefits are paid in arrears (like wages, I grant you). The difference being that people living on weekly benefit payments have budgeted according to this. So, you would have this situation:
Week 1= £100 benefits (weekly amount) then, a 3 week wait until they receive £400.

So, once that £400 per month is received then fine, everything can be budgeted for. But, during the changeover, that family has to make £100 last for 3 weeks longer. Essentially, for that first month, their benefits have been reduced to £25 per week (I appreciate they will receive the same amount eventually) This makes it very difficult to budget for.

I think a good solution would be what previous poster suggested re: short term loans from gov to help with switchover.

P4ula

Sorry for saying this, but if people know this is going start happening from next April, then why are they not trying to save now to help tide them over any transitional phase?

Even just a couple of quid per week saved from now can grow to a useful amount by next April to help tide them through the changeover and also help instil the saving and budgeting mindset that will be needed once monthly benefits start. If saving say £5 per week over the next six months, it would give a 'pot' of £130 to help live on.

I just cannot believe that people think the state should deliver rather than taking on some personal responsibility in this and thinking (and planning) ahead.

Paula

Heycock

I don't know about procedures now on the typical payroll but at one time it was even worse. If you started a salaried job after the payroll cut-off which might be the middle of the month, you had to wait until the end of the following month if that was when pay day was. 6 weeks maybe!
It is a problem in the transition period but that is what happens in the world of work which many claimants aspire to. I assume.

I must admit it certainly affected my decision to stay self-employed. I couldn't bear the thought of going back to the idea of working and then having to wait a month for my money.