Thousands of Brits expecting Universal Credit payments before the New Year are being urged to check their Christmas pay to avoid benefit cuts.
Employers can sometimes pay wages early in December to ensure staff can dodge bank holiday delays and get paid in time for Christmas.
And while this is good news for many, those claiming Universal Credit could end up out of pocket, as an early pay cheque may be flagged as a temporary salary increase.
This is because it could look like you've been paid twice during one assessment period - which could then reduce your benefit entitlement for the following month.
While the Department for Work and Pensions (DWP) has said benefit computer systems will now flag this automatically, claimants could still be left with nothing if employers don't report pay dates correctly.
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HMRC says that any bosses paying staff early need to report the normal pay date on the Full Payment Submission (FPS).
It is also worth flagging the fact you claim Universal Credit to your boss or payroll department, so they can ensure your pay is marked down correctly.
The new system update has managed to help those who are paid multiple times a month as a one-off, for example, if their pay day has moved due to a bank holiday or weekend.
But those who are paid more regularly, such as every four weeks, fortnightly or weekly could see their benefits drop to £0 in some cases.
The DWP has previously argued that those paid by their employer every four weeks will be paid more frequently than those who are paid monthly, and Universal Credit is designed to reflect this.
If you're on Universal Credit and your company is paying staff early, it's best to flag the issue to payroll now to avoid payment cuts.
People on benefits should also be aware of some payments being made early due to the Christmas and New Year bank holidays.
Normally, if your benefit payment falls on a bank holiday, then you should receive your cash the previous working day.
If your money does get sent early, it means your bank account will be replenished sooner than expected following the busy festive season.
But this does mean you’ll need to make your cash last longer. Make sure you budget in January to take any payment changes into account.
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