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<p>The Government recognises the issues caused by the need to adjust to a different frequency of payment, for those moving from benefit into work. 75% of all people in employment currently receive their earnings monthly, and monthly direct debits for household bills are often cheaper than more frequent billing options.</p><p>This is why universal credit will, in the vast majority of cases, be paid as a single monthly payment to a household. Encouraging out of work households to budget on a monthly, rather than fortnightly basis, will better prepare people for the reality of working life. To help people move from current benefits onto universal credit, we will allow them to request an advance payment of universal credit to cover financial gaps where their frequency of benefit payments changes from weekly, fortnightly or four weekly to monthly payments of universal credit.</p><p>Moving to a single monthly household payment is a significant change to the way most benefits are currently paid and we will make support available to help claimants manage that change.</p><p>For a minority of claimants, time-limited alternative payment arrangements may be required. These might included paying the rent directly to the landlord, making more frequent than monthly payments or splitting the payment within the household to ensure the successful transition to universal credit monthly budgeting.</p><p>Detailed proposals for how payment exceptions will be delivered are still being developed, and in order to provide greater flexibility, the circumstances about when payment exceptions will be appropriate will be set out in guidance. This approach will enable cases to be assessed on their individual merits.</p> |