Huge loophole in universal credits system

[Mrspitt3]

So I started a new job at the end of Nov after lost of applications since April. I am working under an umbrella company for a short term tempcontract. Due to not getting holiday pay for the two weeks Christmas shutdown I was advised by the job centre to start a universal credit application. So I did this on 3rd jan. I am earning £250 per week net for 29 hours(4 days a week) I am single mum living with one child.

I have today found out I am not entitled to universal credits due to getting paid 2 weekly (this is how often I submit my time sheet) basically due to the last two weeks ( two weeks up to 21st dec) of dec payments hitting my bank account in jan it looks like I’ve had a bumper month. So even thou I will earn less than 6k in this tax year I’m not eligible to claim.

Here’s the clause, if i don’t submit a time sheet to the company I am working for 3 months I will receive full UC entitlement for 2 months but the 3rd month I won’t receive any cos that’s when the 3 month earnings will hit my bank account and HMRC.

Oh what a farce the system is, how can payment frequency determine someone’s entitlement to UC???

Anyone know an MP that can be told the above?

Try your MP. Sorry, I don’t know enough about it to give any advice.

MrsP

You’re mistaken.
However rather than get in to a debate, just got to your local benefits office ASAP, talk to someone.
Payment frequency does NOT determine entitlement to UC

For the “bumper” month, no you are not entitled to UC and rightfully so.

UC will be adjusted according to what you earn. Whether more or less. It’s sinple. So if you are over the threshold, then your UC is reduced. If you are under then no matter the frequency of payment you will be entitled to UC

It’s tbe figure not the frequency that is important

Yes it does, though. Lots of people get paid weekly and in a 5 week month often lose entitlement to UC, when if they were being paid monthly they'd be entitled every month. It's a known problem.

It is a well known issue with the UC system and will be keeping the benefit bill down. It's outrageous because it is the worst off that will be affected. It is those on zero hours, no contract temp work who are often paid weekly and get holiday pay in a lump. It should be assessed on annual earnings not periodic earnings.

I have today had this clarified by the UC department more than once.
So I asked the question if I decided to submit time sheets every 3 months and ultimately get paid every 3 months. This would show as not getting a wage for 2 months so I would be entitled to full UC entitlement for those 2 months but not the 3rd month as my wage would take me over the limit. Universal credits doesn’t take into account what you earn in a tax year its about what you get paid each month.

Just to be clear in this tax year I will have only earned £6k in total. Because my dec and jan pay hit my acc and HMRC in jan I am not entitled to any universal credits in jan even thou my weekly wage over the two wages works it at £250 per week ( 8 weeks x £250 = £2000) taking me over the eligibility criteria for one month!!!!

Kanieloutish here here it should be based on annual earnings!!!

Canyouguess
Im not mistaken I have had this confirmed today by the universal credits department.

That can't be right. So you could in theory work through a limited Co and just declare a single dividend once a year of any amount and you would receive Uc for the other months?

I’m afraid it is how the system is, 3 different people at the universal credits helpline confirmed this to me.

I’ve told them I’m going to live off my overdraft and credit card for 3 months and submit my time sheet to result in getting paid every 3 months.

For those on temp contracts!!! Claim extra under the universal credits scheme by saving up timesheets and submitting them every 3 months, you will receive full entitlement for the months you do not submit time sheets to your employer/get paid. For example.... Submit Jan, Feb and Mar timesheets to your employer at the end of March, You will get paid 3 months wages in march and this will show at HMRC as a payment in month of March so more than likely won't be entitled to UC in Mar however in Jan and Feb it looks like you didn't earn anything so you will get full UC entitlement for those months!!!!

I am not sure that this would work. As don't you have to be in work as part of your claimant commitment? If they see you have nil income then you would be expected to jobseek full time by jumping through any hoops they tell you to. Obviously you can't do this if you are working anyway. In theory I get what you are saying but I very much doubt they will allow this.

I hate the wording of this so much. But basically they can force you to attend a four week unpaid full time 'work placement' (so, workfare again then?) in exchange for your benefits. So you are better just sticking with your current paid job and submitting your timesheets as normal.

www.entitledto.co.uk/help/Claimant-commitment-Universal-Credit