Thousands of workers who also claim Universal Credit could be left out-of-pocket by 'phantom' payments. They could even find themselves with overpayments they have to repay down the line.
Figures estimate around four in 10 people who claim Universal Credit are also working, reports ChronicleLive. Employers must send information to HM Revenue and Customs (HMRC) every time they pay a worker on Universal Credit, whether it's weekly, monthly or casual work.
The Department for Work and Pensions (DWP) then uses this information to work out how much Universal Credit they should get. However, if your employer or HMRC receives incorrect information, this could result in you receiving less or more Universal Credit than you are entitled to.
If you do get paid more than you should, you’ll have to pay it back. This can leave you out of pocket later, according to The Sun.
And If your employer is late in submitting your payment information, future Universal Credit payments may be docked, with the worst-case scenario meaning you won't receive any payments at all if your employer fails to send the relevant information. Child Poverty Action Group’s Rosie Mears coined the phrase 'phantom payments' in an all-party parliamentary group last November, and the DWP has said that thousands of Universal Credit payments could be affected each year. The official name for these incorrect payments is Real Time Information (RTI) errors.
What can you do if you receive more or less Universal Credit than you were expecting?
You can use HMRC’s website or app to check if you’ve had an RTI error. If you find the incorrect information has been reported to HMRC, take the following steps to rectify it:
- Ask your employer to correct it.
- Contact the DWP and ask them to do an ‘RTI dispute.’ “This means that DWP should re-examine the amount of earnings reported to them and be able to correct them.”
- Flag an RTI error by posting it in your journal.
The DWP has 14 days to review your case and make a formal decision on your earnings for that period, and if you don't agree with its decision, you can request a mandatory review in your Universal Credit journal. If this does not do the trick, the next step is escalating your complaint it to a first tier tribunal.
A DWP spokesman said: “In the vast majority of cases, using real-time information (RTI) provided by employers is an efficient and accurate way of calculating Universal Credit payments. Less than 1% of the remaining cases are referred to HMRC for income clarification. If an applicant wishes to dispute the income information we use, they can provide us with evidence and we will review the case to determine if an amendment needs to be made.”
You can self-report any information your employer should send to HMRC, but doing so can create additional delays that can affect Universal Credit payments.
What happens if I can't attend an appointment?
So-called phantom payments are different to sanctions, which affect your Universal Credit payments if you do not attend interviews, appointments or training arranged by your Jobcentre.
The DWP's Universal Credit website states: "In return for receiving Universal Credit you will need to do certain things. If you are able to prepare or look for work, this will include attending appointments with your work coach. These can take place by phone, video call or in person at a Jobcentre. No matter how your appointment is due to be held, it’s important that you attend. If you are asked to attend an appointment but don’t attend and don’t have a good reason why, your Universal Credit payments will be affected."
