551,000 people who claim Universal Credit were not given a £326 cost of living payment this summer because of a technicality, the Department for Work and Pensions has said. The money was the first half of a £650 handout being given to everyone on Universal Creidt and other benefits his year to help with rising energy bills.
But ministers admit 551,000 Universal Credit claimants missed out because they earned too much from work. The Labour Party believes some of them had two paydays fall in the same 30-day qualifying period because their wages come every four weeks.
This technicality meant their income was temporarily too high to get a cost-of-living payment - even though usually it is much lower. A further 6,600 Universal Credit claimants were refused the £326 payment because they got a benefit sanction, reports The Mirror.
The DWP said anyone who had a “nil award” can appeal, and get the £326 retrospectively.
Shadow Work and Pensions Secretary Jonathan Ashworth, who obtained the figures, 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.”
Some 5.6million people claim Universal Credit. Claimants’ earnings are assessed monthly and they are given a “nil award” if their pay is too high. This can also happen if two paychecks fall in one 30-day period, or if they 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 benefit claimants from November 8.
Universal Credit claimants who had a ‘nil award’ in the second qualifying period, August 26 to September 25, will once again miss out. 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.
But Universal Credit claimants who received a ‘nil award’ because their benefits were deducted to repay debts were able to get the £326. A DWP spokesperson said: “Cost of Living Payments have been designed to target support for households with low incomes, on means-tested benefits.
“But inevitably a small number will be ineligible on the qualification dates of a change of income, earnings or other circumstances. All claimants have the right to appeal their entitlement.”
