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No UC payment due to employer SSP backpay
kensiko
Posts: 297 Forumite
Hello all
A 64 year old lady relative has been claiming UC for 2 months due to ill health and is happy with the amount given in the first month.
However in the second month they received no monies. This is due to her employer not paying any SSP since July of this year. In September I helped write a letter to her employer asking for SSP1 form and also why the SSP had been stopped. They apologised and advised the SSP will stop in November as we had calculated.
To fix the error they paid 8.5 weeks worth of SSP in one go so the UC statement for October showed this and due to an £800 payment no monies were received.
I suspect this is correct but as it was backpay from an employer error and the monies should have been sent weekly which would not have had any effect on UC payments if they were paid correctly, is this worth challenging?
The claimant also received a letter from the council saying her council tax support was being stopped as her UC had been stopped. I have sent a letter to them explaining the situation but have heard nothing yet. It's just very bad timing as we are slowly getting things sorted (LCWRA next) and small things keep taking us 2 steps backwards.
Thanks for reading
A 64 year old lady relative has been claiming UC for 2 months due to ill health and is happy with the amount given in the first month.
However in the second month they received no monies. This is due to her employer not paying any SSP since July of this year. In September I helped write a letter to her employer asking for SSP1 form and also why the SSP had been stopped. They apologised and advised the SSP will stop in November as we had calculated.
To fix the error they paid 8.5 weeks worth of SSP in one go so the UC statement for October showed this and due to an £800 payment no monies were received.
I suspect this is correct but as it was backpay from an employer error and the monies should have been sent weekly which would not have had any effect on UC payments if they were paid correctly, is this worth challenging?
The claimant also received a letter from the council saying her council tax support was being stopped as her UC had been stopped. I have sent a letter to them explaining the situation but have heard nothing yet. It's just very bad timing as we are slowly getting things sorted (LCWRA next) and small things keep taking us 2 steps backwards.
Thanks for reading
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Comments
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Any money received from an employer during an assessment period will affect the amount of UC you receive that month. There's nothing to challenge here unfortunately.0
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poppy12345 wrote: »Any money received from an employer during an assessment period will affect the amount of UC you receive that month. There's nothing to challenge here unfortunately.
Suspected as much, thanks very much for the confirmation. :T0 -
.. the monies should have been sent weekly which would not have had any effect on UC payments if they were paid correctly,
This is not correct. Unless the claimant is responsible for a child or has already been found to have Limited Capability for Work then had the SSP been paid at the correct time a deduction of 63% of the payments would have been deducted from the UC entitlement.
A single claimant on UC standard allowance only and receiving SSP would be getting £408.42/month (averaged out) and would therefore get monthly UC of £60.52. Actual figures would vary slightly.A typical complication is that when someone drops to SSP the PAYE system may generate monthly tax refunds (depending on their previous earnings) and these are treated as earnings, further reducing the UC payable.
\AS there has been a NIL assessment period the UC claim may automatically close. She should check her UC journal and if necessary make a rapid reclaim. This will simply reactivate the claim with the same assessment period dates as previously. She will then get a UC payment next month.
Probably worth explaining to the council what has happened to check whether they will keep the existing Council tax Reduction claim open or whether she needs to reapply.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
This is not correct. Unless the claimant is responsible for a child or has already been found to have Limited Capability for Work then had the SSP been paid at the correct time a deduction of 63% of the payments would have been deducted from the UC entitlement.
A single claimant on UC standard allowance only and receiving SSP would be getting £408.42/month (averaged out) and would therefore get monthly UC of £60.52. Actual figures would vary slightly.A typical complication is that when someone drops to SSP the PAYE system may generate monthly tax refunds (depending on their previous earnings) and these are treated as earnings, further reducing the UC payable.
\AS there has been a NIL assessment period the UC claim may automatically close. She should check her UC journal and if necessary make a rapid reclaim. This will simply reactivate the claim with the same assessment period dates as previously. She will then get a UC payment next month.
Probably worth explaining to the council what has happened to check whether they will keep the existing Council tax Reduction claim open or whether she needs to reapply.
Thanks for such a detailed response.
1. Sorry, yes I am aware of the reductions after being advised on this very forum earlier this year. What I should have said was 'she would have received the expected payment' and not 'not had any effect'. My bad wording.
2. I was not aware the claim would close if a NIL payment is received. I have checked online and it appears everything is still OK and the next statement is due in November as expected. There is nothing in the journal. Maybe this is due to a work capability assessment that is currently being done.
3. Yes, I agree. I have written a letter explaining the situation and waiting to hear back from them. Hopefully they will just put it back as it was and not need to apply again!
Thanks again for your help.0 -
1. Sorry, yes I am aware of the reductions after being advised on this very forum earlier this year. What I should have said was 'she would have received the expected payment' and not 'not had any effect'. .
Presumably in the month she received no pay from her employer she would have got the full £317.82 of UC for the month - or did this predate her UC application?
Claims are supposed to close after a NIL period but it does seem a bit random - possibly the closure requires manual intervention which doesn't always happen. To be safe I recommend that she checks her journal again before the end of the current assessment period (so about 10 days before next payment date) to make sure it is still live.2. I was not aware the claim would close if a NIL payment is received. I have checked online and it appears everything is still OK and the next statement is due in November as expected. There is nothing in the journal. Maybe this is due to a work capability assessment that is currently being done..Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
The claim does close as soon as a nil payment happens and it has to be re activated through a rapid reclaim online. To re activate council tax you need to call the council and speak to the council tax dept. You will need to hand in Uc statements showing the nil payment and possibly other UC payments after that.
My council tax claim closes as soon as I get nil payment on my UC if I earn too much and then I need to show proof of my earnings. Writing a letter won’t sort the council tax issue.0 -
If it hasn’t closed automatically you need to call the service centre and advise them that there’s been a nil payment. They will close it and then you make the rapid reclaim the same day.0
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If it hasn’t closed automatically you need to call the service centre and advise them that there’s been a nil payment. They will close it and then you make the rapid reclaim the same day.
Are you sure. If the claim still shows as live why would you need to tell them to close it in order for you to open it again?Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
Presumably in the month she received no pay from her employer she would have got the full £317.82 of UC for the month - or did this predate her UC application?
Claims are supposed to close after a NIL period but it does seem a bit random - possibly the closure requires manual intervention which doesn't always happen. To be safe I recommend that she checks her journal again before the end of the current assessment period (so about 10 days before next payment date) to make sure it is still live.
Correct, she did receive the right amount in the first month of their claim, when no SSP was received.
I will keep a close eye on the journal.The claim does close as soon as a nil payment happens and it has to be re activated through a rapid reclaim online. To re activate council tax you need to call the council and speak to the council tax dept. You will need to hand in Uc statements showing the nil payment and possibly other UC payments after that.
My council tax claim closes as soon as I get nil payment on my UC if I earn too much and then I need to show proof of my earnings. Writing a letter won’t sort the council tax issue.
Hopefully they will write very soon on this matter. I did explain the situation and said I can forward the letter from the employer admitting their mistake and also proof of earnings. Thanks for the advice as I will chase this up.If it hasn’t closed automatically you need to call the service centre and advise them that there’s been a nil payment. They will close it and then you make the rapid reclaim the same day.
As above I will keep a close eye on it, but I suppose a quick addition to the journal ensuring all is OK wouldn't harm matters.0 -
So actually she hasn't lost out - she's up by nearly £200.
Because she had no income in one month she got £317.82 UC.
In the next month she got nothing because the SSP was lumped together.
Total UC for the two month period £317.82.
Had the SSP been paid correctly she would have got UC of £60.52 in each month (assuming no children or LCW).
Total UC for the two months £121.04.
Obviously the above analysis doesn't take into account any housing element if she is receiving one.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0
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