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<p>Statutory Maternity Pay (SMP) is paid by an employer through their payroll system
and is therefore a form of earnings subject to the work allowance (where a claimant
is eligible) and tapering, in the same way as other earned income. As a consequence,
information surrounding the volumes of SMP payments received by Universal Credit claimants
in the Highland Council area is not readily available and to provide it would incur
disproportionate cost.</p><p> </p><p>Universal Credit seeks to take earnings into
account in a way that is fair and transparent. The amount of Universal Credit paid
reflects, as closely as possible, the actual circumstances of a household during each
monthly assessment period, including any earnings reported by their employer or employers
during the assessment period, regardless of when they were paid, or which month they
relate to.</p><p> </p><p>Assessment periods allow for Universal Credit awards to be
adjusted on a monthly basis, ensuring that if a claimant’s income changes, they do
not have to wait several months for a corresponding change in their Universal Credit
award. Claimants can discuss the implications of any changes in earnings with their
Case Manager or Work Coach and can be referred to personal budgeting support to help
them manage their budgeting.</p><p> </p><p>The Department has been working closely
with HMRC since Universal Credit went live in 2013 to support and inform employers
who report earnings to emphasise the importance of timely reporting via the Real Time
Information system.</p><p> </p><p>HMRC have updated their guidance to reiterate to
employers the importance of reporting accurate dates and the impact on payment cycles;
the Financial Secretary to the Treasury is also working closely with HMRC and employers
to do this.</p>
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