It has been reported that thousands of UK workers are being hit by 'phantom' payments which leave them out of pocket or land them with an overpayment that has to be repaid further down the line. Claimants of Universal Credit are at risk of receiving the miscalculated payment.
Nottinghamshire Live sister publication, Chronicle Live, says that around four in 10 of the 5.8m people who claim the Government benefit are working. Universal Credit is a payment to help with living costs for those on a low income or unemployed. It tops up wages for those employed.
According to the report, 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. This information is then used by the Department of Work and Pensions (DWP) to determine how much Universal Credit to pay the worker.
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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 get paid more than you should, you’ll have to pay it back, which 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 to do if this happens to you
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.
If you receive more or less Universal Credit than you were expecting then 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.”
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."
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