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Forum Home  →  Discussion  →  Universal credit administration  →  Thread

Entitlement to part month payments

LauraD
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I am trying to write a (depressing) presentation on Universal Credit for people who do not usually do any benefits work but will need to support clients who are making claims or being transferred.

One of the Unison factsheets states that “People do not realise when they come off Universal Credit they will not get a payment for the uncompleted month and that includes the housing element. Someone may be 25 days into the next monthly period for Universal Credit when they take a job that takes them off Universal Credit. They will get nothing for those last 25 days and may not be able to pay their rent.”

I can’t find anything anywhere that confirms (or refutes) this- can anyone point me in the direction of something which does so?

Mr Finch
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This sounds like the rule that a change of circumstances (whether advantageous or not) takes effect from the beginning of the assessment period (month) in which it occurs:

http://www.cpag.org.uk/content/universal-credit-monthly-awards

Daphne
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The amount the claimant gets in that monthly period will depend on the income received. If they do not receive any wages in that period and their circumstances as regards children, partner, housing etc are the same they will still receive the same amount of UC as they had been previously. If they receive some pay but a small amount - say just a weeks wages - then that is the income figure that will be used subject to work allowances.

Receiving wages/starting work is not a change of circumstances that affects your maximum UC award or takes away eligibility. Any income received during a monthly period will affect the amount that the max award is reduced by however, and therefore affects your entitlement.

The factsheet sounds like it does not tell the full story and could therefore be misleading. You do not ‘come off’ UC when you start work. Your entitlement may be affected. In fact you remain on the UC system for 6 months even if you have no entitlement.

Regulation 22 of the UC regs sets out how income received during an assessment period is treated and therefore what is deducted from the maximum award.

[ Edited: 16 Sep 2014 at 12:22 pm by Daphne ]
stevejohnsontrainer
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s7 of the Welfare Reform Act 2012 says… “Universal credit is payable in respect of each complete assessment period within a period of entitlement.” Then Reg 21 UC Regs defines what the Assessment Period is etc.

Have a look at the DWP example at Para E2110 of Chapter E2 of the UC Guidance… “Bill claims and is entitled to UC from the 4th September, his assessment period is a month. The start of Bill’s next assessment period begins on the 4th October however on 2nd November Bill’s circumstances change that ends his entitlement. Bill receives UC for the assessment period from 4th September to 3rd October but nothing for the period 4th October to 2nd November because it is not a complete assessment period.” Poor old Bill.

The AP timing dominates everything, including changes of circumstances. Baby born just before end of AP? They owe you some areas. Oldest child leaves home just before end of AP? You owe them money. I suppose when you fall in love can mean arrears payable as a couple etc. I am seriously thinking of creating a UC love web site to give advice on these matters (including when to dump your partner during the TP, when the loss of TP is outrun by the merits of being single).

Bryan R
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So the question is if Bill can’t get UC for the period stated, what does Bill live on?

Does he have to claim hardship? Does Bill have to to his Assistance scheme in his area - most of which only help out 3 times in one year?

What other avenues are open to Bill so that he can pay, the rent, the gas, electricity, water, food, clothes for the kids etc?

Is the act reasonable & proportionate? Are there any substantive or procedural areas where the Regs and the Act might be successfully challenged?

Poor Old Bill

[ Edited: 18 Sep 2014 at 11:59 am by Bryan R ]
stevejohnsontrainer
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Bill needs to act more responsibly, and terminate his UC entitlement at the right point. Anyone would think that he was unaware of the provisions of s7 of the Welfare Reform Act 2012. Will the UC award notices spell out this peril? What about people who cannot control their UC termination date?

Within UC I can see no assistance for Bill from that point, because by then he would not be entitled nor likely to be, and thus disconnected from any of the advance payment provisions. He has not been sanctioned, so no Hardship. i cannot see another route. I think it will be down to the Town Hall for BIll - maybe he will bump into a job on the way, since I understand things are looking up. The end of government LWS support from April 2015 will of course add certain measure of uncertainty.

It would all be a bit silly really, if it wasn’t so serious. UC is supposed to replicate a wage (monthly in arrears etc), but if Bill left work on notice 3 days before payday, he would still get almost a full months pay. The AP domination is a very blunt tool, and I suspect more about reducing admin costs than anything else.

Daphne
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You can’t end ‘entitlement’ mid-assessment period as I understand it - entitlement is assessed at the end of the assessment period. I think the DWP example is poorly worded!

You could end eligibility eg by inheriting over £16,000 or moving in with someone else and going on their claim.

But in Laura’s example he starts work. What is relevant at the end of the assessment period is whether he has received any wages. If he hasn’t then the calculation will be the same as it was the previous assessment period. If he has then those wages will affect his entitlement and possibly reduce it or even take it away if it’s a higher amount.

Leaving or starting work is not a change of circumstances that in itself affects entitlement (conditionality maybe!!)

stevejohnsontrainer
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Hi Daphne,

I am clearly struggling with this. Am I misunderstanding the wording of s7 of the WRA? Are you saying that you can get a fragment of an AP award, corresponding to the number of days from the beginning of the AP to the day you cease to be ‘entitled’ to UC? Good news for BIll.

Assuming you are right about not deciding entitlement termination before the end of the AP, that in itself would not guarantee you could get a fragment of the AP. It would help me greatly if you could refer to the source of the business of not ending entitlement until the end of the AP.

You may well be right about the Bill example being badly worded, but what should it be saying?

stevejohnsontrainer
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Daphne,

Re-eading your last post, had Bill moved in with someone etc or possibly started a full time training course outside of the UC exceptions etc, would you agree then that he would not get UC for the fragment of his AP leading up to the date of his cessation of entitlement?

Steve

stevejohnsontrainer
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I quite agree that work or wage changes would not alter
entitlement in the sense you mean. Sorry for going off on that
tangent. Surely still an issue for ‘deal buster changes though!

Daphne
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stevejohnsontrainer - 18 September 2014 12:33 PM

Daphne,

Re-eading your last post, had Bill moved in with someone etc or possibly started a full time training course outside of the UC exceptions etc, would you agree then that he would not get UC for the fragment of his AP leading up to the date of his cessation of entitlement?

Steve

Yes steve definitely I agree - that is where it works really badly.

I think we’re saying the same thing now aren’t we?

stevejohnsontrainer
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Yes indeed - thanks for that Daphne.

Bryan R
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Basis of awards

47.Section 7 provides that an award of universal credit is to be payable in respect of an assessment period. This period will be prescribed in regulations. Under subsection (3) regulations will also allow for universal credit to be payable in respect of part of an assessment period, for example to deal with a part-period at the beginning or end of an award.

http://www.legislation.gov.uk/ukpga/2012/5/notes/division/5/1/7

so part of an AP is payable or am I holding the wrong end of the stick?

So it looks like Bill might be OK!!!

[ Edited: 18 Sep 2014 at 08:24 pm by Bryan R ]
stevejohnsontrainer
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I will ponder this further, but s7(3) only allows regs to permit AP fragments (‘may’). For example, reg 21(5) of the UC regs appears to positively allow a fragment of an AP to be paid if backdating cannot go back a full month. But I suspect the exceptions have to be specified in the regs. Thinking it through, with some exceptions, all major changes of circs (like the ones mentioned by Daphne earlier) are treated as retrospective to the beginning of the relevant AP. That does not sound good for Bill, who i am becoming increasingly concerned about. Daphne, what say you?

Daphne
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I think you’re right Steve - s7 only says ‘may’ and the only part AP I am aware of is the backdating bit that you mention. Any other exception would need to be specified in regs and I don’t think it is.

Schedule 1 para 20 of the UC(D&A) Regs clearly states that a change of circumstances takes effect from first day of AP. So if something happens that terminates your award , eg inheriting 20K, then that change of circs applies from start of AP and no UC is payable for whole period. (Terminates is a better term than ‘end entitlement’ because you can have a nil entitlement at the end of an assessment period and your award of UC can carry on running for 6 months with a nil entitlement)

So if the change of circs Bill has is one that terminates the award then that applies from the start of the AP and he will get no money for that AP.

In Laura’s example however the award is not terminated and entitlement will still be assessed at the end of the AP. The maximum award will still be the same (assuming no changes other than the start of work) and the amount he gets paid is dependent on the wages received during that AP. If he hasn’t yet had any wages he is fine and dandy - for that AP anyway.

Laura - I think it might be worth contacting Unison about their factsheet as it is misleading.

stevejohnsontrainer
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Thanks again Daphne - that is very clear.

LauraD
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Thank you all very, very much- there is more information here than I could have hoped for!

Daphne, I will definitely contact Unison. Thanks!

Bryan R
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No, one is NOT entitled to Part Month Payments. Read on

DWP Central Freedom of Information Team
e-mail: .(JavaScript must be enabled to view this email address)
Our Ref: VTR 4095
24/10/14


Thank you for your Freedom of Information request of 26/9/14. You asked:
S7 of the Welfare Reform Act 2012 says… “Universal credit is payable in respect of
each complete assessment period within a period of entitlement.” Then Reg 21 UC
Regs defines what the Assessment Period is etc.

Have a look at the DWP example at Para E2110 of Chapter E2 of the UC Guidance…
“Bill claims and is entitled to UC from the 4th September, his assessment period is a
month. The start of Bill’s next assessment period begins on the 4th October however on
2nd November Bill’s circumstances change that ends his entitlement. Bill receives UC
for the assessment period from 4th September to 3rd October but nothing for the period
4th October to 2nd November because it is not a complete assessment period.”

In the explanatory notes of the act it states at Para 47 the following
Basis of awards
47.Section 7 provides that an award of universal credit is to be payable in respect of an
assessment period. This period will be prescribed in regulations. Under subsection (3)
regulations will also allow for universal credit to be payable in respect of part of an
assessment period, for example to deal with a part-period at the beginning or end of an
award. http://www.legislation.gov.uk/ukpga/2012/5/notes/division/5/1/7
so part of an AP is payable, however s7(3) only allows regs to permit AP fragments
(‘may’). For example, reg 21(5) of the UC regs appears to positively allow a fragment of
an AP to be paid if backdating cannot go back a full month.

Will part payments be possible under UC with regards to assessment periods ending
early as I have set out above? If so, where in the Regs or the Act does it make it
possible?”

Whilst your request does not fall within the scope of a FOI because it is not asking us to
provide information, we can tell you that the answer to your question is no.


This is because Universal Credit is assessed and paid in arrears, on a monthly basis in a
single payment. The first payment will be paid no longer than seven days after the end of the claimant’s first assessment period. Subsequent pay days will be on the same date each month thereafter and the amount will not be varied to reflect the number of days in the month.

If a claimant’s pay day falls on weekends or bank holidays, the pay day will be advanced to the nearest working day. This ensures that at the end of each assessment period, the claimant is paid an amount that reflects their circumstances for the forthcoming month. This “whole month” approach means that UC payments reflect the claimant’s circumstances at the point of payment

Claimants are required to submit information about changes of circumstance which may affect their entitlement or award as soon as possible after the change occurs and before the end of the assessment period in which the change occurs. This means that changes of circumstance which affect the award calculation will be treated for the purpose of the award calculation as if they occurred at the start of the assessment period in which they took place – rather than attempting to calculate pro rata. We will only allow for a shorter assessment period where a claimant is eligible for period preceding the date of the claim (known as a backdated claim).

In these cases a claimant will receive a separate payment for the backdated period
This also applies at the end of an award – a claimant will receive no further payments of UC after they have undergone a change of circumstance which ends their entitlement. Nothing would be paid for the assessment period in which entitlement ended. The only exception to this is where a claimant reaches the qualifying age for state pension credit, where we will pay Universal Credit up to the day before. This provision is contained in paragraph 26 of Schedule 1 of the Universal Credit, Personal Independence Payment, Jobseeker’s Allowance and Employment Allowance (Decisions and Appeals) Regulations 2013 (SI 2013/381).

This allows a part month payment for people reaching pension credit entitlement age who have made an advance claim to pension credit and facilitates a smooth transition from working age to pension age.

https://www.whatdotheyknow.com/request/231586/response/576354/attach/2/FOI 4095.pdf

[ Edited: 27 Oct 2014 at 09:28 am by Bryan R ]