Financial experts are urging people who claim Universal Credit to check if they’ve been underpaid.
MoneySavingExpert, founded by Martin Lewis, has explained how information about your earnings could end up in the wrong assessment period due to a “flaw” in the system. The Department for Work and Pensions (DWP) communicates with HM Revenue & Customs (HMRC) to help it work out your Universal Credit award, if you worked in your last assessment period.
HMRC will normally match up your earnings information with your National Insurance number - but if your employer submits your pay details without your National Insurance number, this could cause delays. The MoneySavingExpert website has warned that this delay could mean your earnings information ends up in the wrong Universal Credit assessment period.
Read More: Over two million DWP benefits claimants could get £1,500 in compensation
It means it could look like you’ve earned more than you did, which means you might have received less Universal Credit than you should have. Or it could mean you’ve been marked as working less than you did - in which case you would have been overpaid and would need to pay this back to the DWP.
MSE estimates roughly 1% of worker's earnings information is submitted without a National Insurance number each month. This means around 20,000 people, out of the 2.2 million working Universal Credit claimants, could be affected by this issue, reports The Mirror.
How to check your Universal Credit payments
If you’re worried you’ve been under or overpaid, the first thing you should check is your online Universal Credit account. Here, you should find a detailed breakdown of how much you’re getting in Universal Credit and all the different elements that make up this amount.
For example, you should see your standard allowance - the basic amount you're eligible for - along with any extra elements you get, plus your work allowance. Next, scroll down to the section on your Universal Credit account titled “take home pay” and make a note of how much it says you’ve made in this assessment period.
You’ll then need to compare the amount shown here with the take-home pay amount on your payslips, or how much was paid into your bank account. MSE says you’re most likely to be affected by a payment issue if:
- You get paid weekly, fortnightly, four-weekly, or irregularly.
- You didn’t have to provide a national insurance number when you gave your employer your payment information.
- You have pay days that fall very close to the end of your universal credit assessment period.
- You've just started a new job. HMRC says that earnings information for 1 in 15 new employees is submitted without a national insurance number.
What you can do to fix Universal Credit payment issues
You'll need to raise the issue with the DWP so they can look into what went wrong. You can do this through your online account, or by calling the helpline for free on 0800 328 5644.
Make sure you have bank statements and payslips to hand to prove your earnings. If DWP say they can't fix the issue, ask for a "mandatory reconsideration" - you can do this over the phone, by making a note in your journal or by filling out CRMR1 form.
If you're not happy with outcome, you have one month to appeal. You can do this by filling out an appeal a benefit decision form, or by filling out and posting an SSCS1 form.
The Government told MSE that it's aware of the problem - but said it is the responsibility of employers and claimants to check for mistakes. A spokesperson said: "DWP and HMRC work closely to support and inform employers who report earnings, to emphasise the importance of timely reporting via the RTI system, to reduce any issues.
"HMRC has updated its guidance to reiterate to employers the importance of reporting accurate dates and the impact on payment cycles."
Read Next:
Householders urged to claim £150 grant 'as soon as possible' as deadline looms
All the DWP cost of living payments you could get from now until December including energy cash
Your rights if you choose not to pay energy bills amid cost of living crisis
DWP could give up to £156 PIP benefit to people who snore - here's why
Money Saving Expert Martin Lewis issues new advice on fixed-rate energy tariffs
