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>
Assessment periods allow for Universal Credit awards to be adjusted on a monthly basis, ensuring that if claimants\u2019 incomes fall, they do not have to wait several months for a rise in their Universal Credit award.<\/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>
The Government is working with employers to ensure that they use the most appropriate payment practices and comply with RTI guidelines in order to minimise the incidence of erroneous or late reporting by employers. HMRC have updated the guidance to reiterate to employers the importance of reporting accurate dates and the impact on payment cycles.<\/p>