May 2019 – Universal Credit Challenge

02/05/2019

The High Court recently ruled on a number of cases challenging the way that income is assessed for Universal Credit (UC) – in particular the period over which earnings are calculated.

The claimants (all women) were employed and paid monthly but because they were paid on or around the last working day or last banking day of the month, there were times when earnings payable for two different months fell within the same UC assessment period. As a result they were treated as having two lots of wages for the same month and UC was significantly reduced or lost as a result. For example, one woman had an assessment period that ran from 30 November to the 29 December. She was paid her salary on the 30th November as usual but because of bank holidays and weekends, her December salary was paid on the 29th instead of the 31st and so she was treated as having twice the level of income for that period.

 

The High Court held that the decisions counting two payments of earnings as relating to one assessment period was wrong resulting from an erroneous interpretation of the regulations. However, the Secretary of State has applied for leave to appeal the judgement to the Court of Appeal.

  

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