Debbie Abrahams MP, Labour’s Shadow Work and Pensions Secretary, commenting on new DWP guidance on Universal Credit that shows people paid four weekly will see their award drop dramatically when two pay packets are paid in a one month period said:

“This is yet another problem in the Government’s disastrous roll out of Universal Credit. The DWP admits there is a problem but have done nothing to properly address the concerns I and others have raised with them.

“I am extremely concerned that those on the lowest incomes, who already manage on a tight budget suddenly won’t be able to pay their rent or their bills, and could be driven into the hands of payday lenders. The DWP state people on four weekly, predictable pay will need to reapply for Universal Credit – a complete waste of taxpayers’ money, never mind the time and effort for claimants.

“Theresa May says she wants to help the people who are struggling to get by, but the way Universal Credit is designed creates problems not solves them. The Prime Minister should get a grip of Universal Credit roll-out, look at the myriad problems in implementation and immediately U-turn on the Tories’ cuts to the work allowance.“

Ends 

Note to Editors

1.      DWP guidance is at https://www.gov.uk/government/publications/universal-credit-different-earning-patterns-and-your-payments

2.      In July the Public Accounts Committee heard of a case of someone in Cornwall who was paid four weekly. He was suddenly informed in April that he would receive no universal credit for that month because in March he had exceeded the earnings limit. He apparently had no warning that that would happen and had not budgeted sufficiently, so he had to use a credit card to pay for food and basic necessities that month and cancel all his direct debits.