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<p>Universal Credit takes 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 the employer during the assessment period, regardless of when they were paid, or
which month they relate to.</p><p>Assessment periods allow for Universal Credit awards
to be adjusted on a monthly basis, ensuring that if claimants’ incomes fall, they
do not have to wait several months for a rise in their Universal Credit award.</p><p>Claimants
can discuss queries about how fluctuating income effects Universal Credit with their
case managers and work coaches, who can also signpost to services appropriate to individual
circumstances.</p><p>The Department has been working closely with HMRC since Universal
Credit went live to support and inform employers who report earnings to emphasise
the importance of timely reporting via the Real Time Information (RTI) system.</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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