A staggering half a million Universal Credit claimants have been denied the cost of living payment, worth £326.
Ministers have revealed that 551,000 Universal Credit claimants have missed out on the cost of living payment, due to the fact that they earned too much from working. Coventry Live reports that this was down to a technicality in the payment criteria.
The Labour Party has stated that some claimants had two paydays fall in the same 30-day qualifying period, as they were all paid monthly. This technicality mean that their income was temporarily too high to claim the cost of living payment - despite the fact that it is usually much lower.
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There were also 6,000 more claimants that were refused the £326 payment as they received a benefit sanction. This was revealed by the Mirror in August 2022.
The pleas made to the Department for Work and Pensions (DWP) have fallen on deaf ears, as the government body stated that anyone had a "nil award" can appeal, and get the payment - but others are now too late. The figures of those who missed out were obtained by Jonathan Ashworth, the Shadow Work and Pensions Secretary.
He said: "It’s staggering that so many people struggling to cope with the pressures of rising energy bills were denied help simply because of the quirks of DWP computer system or sanctions. This is a crisis for thousands of households. Ministers should get this vital help to those who need it.”
There are approximately 5.6 million people who claim Universal Credit, however, not everyone receives a benefit payment each month. This is due to the fact that the benefit drops by 55 pence for every pound they earn through work.
As their earnings are assessed monthly, a claimant can be given a "nil award" if the pay they receive that payday is too high. They can also be given no payment if two pay checks fall in one 30-day period, or if claimants are hit with the harshest benefit sanctions for “failing” to look for work.
Anyone who received a ‘nil award’ between April 26 and May 25 was denied the £326 cost of living payment. The second cost of living payment, worth £324, will be paid to claimants from November 8.
Those on Universal Credit who had a "nil award" in the second qualifying period, August 26 to September 25, will once again miss out on the payment. It is understood that a further 470,000 housing benefit claimants did not receive the £326 because they were not claiming one of the benefits that qualifies for targeted cost of living support.
However, Universal Credit claimants who received a "nil award" because their benefits were deducted to repay debts were able to get the £326.
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