More than 550,000 people on Universal Credit have been denied the cost of living payment according to an exclusive by Nottinghamshire Live parent publication, the Mirror. The "staggering" figures, totalling over half a million, are said to have been caused by a technicality.
The £326 payment, which arrived in the bank accounts of eligible recipients in the summer, was designed to help tackle the rising cost of living as Brits witnessed rising fuel, energy and food bills. The total amount payable will be £650, payable in two parts with the second amount of £324 being rolled out from November 8.
Ministers are now saying that 551,000 Universal Credit claimants missed out because they earned too much from work. Labour believe some of them had two paydays fall in the same 30-day qualifying period because their wages come every four weeks. This meant their income was temporarily too high to get the 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, according to the publication.
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A Department for Work and Pensions (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.”
Some 5.6million people claim Universal Credit (UC), but not all of them get a benefit payment every month - because UC drops by 55p for every £1 they earn through work. Claimants’ earnings are assessed monthly and they are given a “nil award” if it their pay is too high.
This can also happen if two pay checks 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 Department for Work and Pensions (DWP) refused critics’ pleas to ditch the policy - instead saying 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.”
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