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Forum Home  →  Discussion  →  Universal credit administration  →  Thread

Holiday pay

Jezy
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Welfare rights team - Colchester Borough Council

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Total Posts: 22

Joined: 22 June 2010

Client receives ‘new-style’ ESA and a UC top-up of £186 per assessment period.  She remains in employment although is still too ill to return to work. Employer has recently established she is entitled to a payment of £2,000+ holiday pay. Employer is offering to pay this in instalments so as to reduce any effect on her benefits
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The holiday pay will be treated as earnings for UC purposes.  So if client took it in instalments I suspect she would be treated as having notional income because it could be decided she reduced her earnings in order to maintain her entitlement to UC. 

My advice will be that she has no option but to take the holiday pay in one go and lose one month’s UC,  then rapidly reclaim UC on the first day of her next assessment period.  Any alternative suggestions?

seand
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Welfare rights officer - Wheatley Homes

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Total Posts: 305

Joined: 16 June 2010

I can see the possible notional income issue, but surely if the employer decides to pay it in instalments then it was not her decision?