Forum Home → Discussion → Universal credit administration → Thread
Income / Earnings received during Assessment Period
One of the things we haven’t discussed much on here is timing of income received during a particular Assessment Period and impact on UC calculation.
For example, someone who is 4 weekly paid, gets two payment during a one month assessment period - giving a higher income figure for that particular month.
Or someone coming out of work is expecting a payment, and considers whether to make their UC claim before the payment is received or afterwards.
Does anyone have examples in practice yet they can share?
I haven’t got any examples Sarah but I think it is just whatever you get paid during the assessment period that counts - so if you have two payments due to 4 weekly pay then your next UC payment will be reduced (or possibly even be wiped out) accordingly. I also think if you are about to get a payment from previous work you may well be advised to put off your UC claim so the payment doesn’t fall within the assessment period. But my understanding is that the assessment period starts after the waiting days - see discussion thread here http://www.rightsnet.org.uk/forums/viewthread/7579/ - so it would be OK for the payment to come during the waiting days. So a claim could go in, say, 6 days before the payment due and the first day of entitlement would be after it had been paid.
But I welcome other views and, particularly, experience.
Thanks Daphne that’s also my understanding, that income received during the assessment period counts, and these kind of scenarios come up in discussion on training quite often, which is why it would be interesting to hear experiences or anomalies.
Good point about the waiting days and income received during them.
I welcome other views and, particularly, experience.
I think that it will be experience, followed by challenge and adjudication, that’s going to be needed to determine this. I’m not convinced, unusual though it may be, that the department will get it right every time.
Following on from that then .... If a UC claim is nilled due to 2 payments of wages in one month - Does this class as a cancellation and a new claim for UC need to be made due to the next month having less income?
No - because you stay on the system with an open claim for 6 months of nil payments, the UC will just kick in again the next month when there are reduced earnings - no need for a new claim.
We recently had an enquiry about treatment of a tax rebate under UC. The payment was for a previous year, and would be treated at capital for IS etc, but DWP are treating it as earnings, for the assessment period in which it was paid. The claimant has appealed, but looking at the UC regs, the decision appears to be correct.
Another brief worry -claimant finished work in early August, claimed UC in Sept, started p/t work after that and earned under £300 but the UC assessment initially counted £1000 for Sept - it included July/August payments from the previous employer.
UC put this right eventually, but they said that was the way that their computer system works. the problem was caused by the former employer sending details late - in September…
Could cause trouble…....
No - because you stay on the system with an open claim for 6 months of nil payments, the UC will just kick in again the next month when there are reduced earnings - no need for a new claim.
I wonder what happens in the digital trial area(s) where the six month rule ( reg 6 of the UC C&P Regs ) is no more?
( Unhelpfully, the law volumes just show reg 6 as revoked without mentioning the savings that apply to the vast majority of UC claimants - see http://lawvolumes.dwp.gov.uk/docs/a14-6701.pdf )
This is from the explanatory memorandum to the digital service amendment regs:
Regulation 6 is revoked by these Regulations, which means the claimant will be required to make a claim. However, this will be a simplified claim process. If that person still meets the basic entitlement conditions, they will only need to contact the Department and provide updated information.
Rapid reclaim by the look of it
This is from the explanatory memorandum to the digital service amendment regs:
Regulation 6 is revoked by these Regulations, which means the claimant will be required to make a claim. However, this will be a simplified claim process. If that person still meets the basic entitlement conditions, they will only need to contact the Department and provide updated information.
Rapid reclaim by the look of it
Thanks for pointing that out HBA - I wonder how that’s working out in practice - has anyone reclaimed using the ‘simplified’ process?
My experience of income fits with the views above - whatever ‘drops in’ during the assessment period counts. What makes it difficult for customer is the fact that they are advised what they can expect at the end of the assessment period which is the full personal UC and the housing element. How any income will impact on what they actually get is not explained, so we have the same situation as we have with HB and fluctuating income, the customer has the income during the month, doesn’t use any towards rent and then finds a much reduced payment of UC. It is important to encourage customers to keep claims live though as income starts to increase (even though they face conditionality) as it will allow UC to kick in again if income drops. If they stop claim in the first month due to getting some income they may think they will get paid up to that date, they won’t the claim needs to be a complete month and there is no fall back on housing benefit, they will be a UC claimant. You should also note that overpaid/overlaps of housing benefit with first UC assessment period are classed as income if the LA gets in quick enough is deducted in full. We have also found that the 7 waiting days have been applied even when the customer has had HB in payment the previous month and a request for repayment has been submitted to DWP. What has been happening in the North West all this time with pathfinders & rollouts? They have certainly not paved the way for a smooth expansion.
Could you clarify Jon please. I thought there would always be a live claim kept open for 6 months. Are you saying once you are in the digital area (and isn’t everyone supposed to be in one of those from next April?) that the six month rule won’t apply and that people with fluctuating income would potentially have to reapply on a regular basis?
Could you clarify Jon please. I thought there would always be a live claim kept open for 6 months. Are you saying once you are in the digital area .... that the six month rule won’t apply and that people with fluctuating income would potentially have to reapply on a regular basis?
I think that’s right - it looks like a new (‘simplified’) claim would be required - (although assessment periods will remain aligned with previous if reclaiming within 6 months).
(See para 7.3 of the EM : http://www.legislation.gov.uk/uksi/2014/2887/memorandum/contents )
This bit: “7.1 The amendments contained in these Regulations are those that will reflect Universal Credit in the enhanced Digital Service but will not be implemented in the Live Service.” implies that this is not just for the digital trial but is policy intention for the digital service in general ( but they could always change their mind.)
...(and isn’t everyone supposed to be in one of those from next April?)...
I very much doubt that digital will happen immediately for everyone in April 2016. The DWP’s Dec 2014 expectation was that digital would be extended region by region over the period May 2016 to Dec 2017.
What actually happens depends on whether the systems behind the digital service are ready - I don’t have any information on that.