Government review of Universal Credit to look at issues for those paid four-weekly – Usdaw welcomes commitment

Ben Goldsborough MP (South Norfolk, Labour) asked: “As a proud member of Usdaw, I wanted to raise with the Minister the amazing work that they’ve been doing to estimate that around three quarters of workers in typically low-paid sectors are paid on a weekly, fortnightly or four-weekly basis rather than monthly, but this is not recognised by Universal Credit. Can the Minister promise to meet with Usdaw and other trade unions to make sure this matter is investigated?”

Rt Hon Sir Stephen Timms MP, The Minister of State, Department for Work and Pensions (East Ham, Labour) responded: “That is absolutely right. If you’re paid four-weekly that means you receive thirteen payments in a year. So there will be one of the twelve monthly assessments periods every year when you’re paid twice and you probably get no Universal Credit that month, completely messing up budgeting. I would be delighted to meet with Usdaw to discuss what we can do in the course of our review of Universal Credit.”

Paddy Lillis – Usdaw general secretary says: “When the Tories introduced Universal Credit, they simply failed to understand the lives of many low-paid working people who are very often paid four-weekly, fortnightly or weekly. Universal Credit is paid monthly and that creates enormous difficulties for those who aren’t, because two pay days in a single calendar month means loss of Universal Credit and could lead to the claimant having to reapply for this much-needed income support.

“So, we very much welcome that the new Labour Government has committed to reviewing Universal Credit so that it makes work pay and tackles poverty, something Usdaw has long called for. It is our sincere hope that this will lead to substantial changes, to help ensure that the lowest paid working parents get the social security they need. So that fewer children are growing up in poverty, despite being in a working household.”