Universal Credit first payment deduction

newclaimant

I was made redundant early August and started a UC claim from the following Monday. My wage for the period I actually worked in early August was paid to me at the end of August.

This amount has been deducted from my first UC payment. Is this correct? Although I received the money during the assessment period, I actually earned it prior to starting a claim.

Thanks for any help [and if it is wrong, where in the DMG can I quote from?].

[Deleted User]

Yeah that’s correct.

It’s when it is paid not earned.

newclaimant

Okay thank you.

Spoonie_Turtle

Alas, yes that's correct. It can cause all sorts of problems if employers pay lump sums for whatever reason (holiday not taken, redundancy payment, back pay for correcting various mistakes, whatever) but thankfully for you it clearly didn't take you above the threshold to close your claim

I doubt many people think it's actually fair as it was earned before the claim started but unfortunately that's the way it is.

11krage

It's better than the other way around. Could you imagine what it would be like if UC took into account earnings from the time you earned them, and not when you actually received them? Would be way more unfair than it is now as you wouldn't have received any money in that period, but your UC would still be reduced.


This way income is taken into account only for the period when you received that income. So if you received x amount in an assessment period the amount of UC is reduced so between UC and earnings you receive a certain amount.


Rather than receiving no income during an assessment period, but still having UC reduced to zero for earnings you'll receive in a month or so.

Spoonie_Turtle

11krage wrote: »

It's better than the other way around. Could you imagine what it would be like if UC took into account earnings from the time you earned them, and not when you actually received them? Would be way more unfair than it is now as you wouldn't have received any money in that period, but your UC would still be reduced.


This way income is taken into account only for the period when you received that income. So if you received x amount in an assessment period the amount of UC is reduced so between UC and earnings you receive a certain amount.


Rather than receiving no income during an assessment period, but still having UC reduced to zero for earnings you'll receive in a month or so.

That's a good point, once you're on UC it clearly is better. It's just a shame they can't disregard any money wholly earned before starting the claim, particularly for those who are claiming due to no longer having a job.
(But then I guess that would give them even more opportunity to mess up, so perhaps it is for the best!)

Robbie64

Spoonie_Turtle wrote: »

That's a good point, once you're on UC it clearly is better. It's just a shame they can't disregard any money wholly earned before starting the claim, particularly for those who are claiming due to no longer having a job.
(But then I guess that would give them even more opportunity to mess up, so perhaps it is for the best!)

I don't think the way UC has been set up could allow income received being ignored. If HMRC have it on their systems it will automatically reduce UC. The alternative would be manual intervention which UC is designed to keep to a minimum.

Spoonie_Turtle

Robbie64 wrote: »

I don't think the way UC has been set up could allow income received being ignored. If HMRC have it on their systems it will automatically reduce UC. The alternative would be manual intervention which UC is designed to keep to a minimum.

I agree. Only time will tell if less manual intervention has reduced the error rate of not.