Back in August, the Child Poverty Action Group flagged up a problem caused by the interaction between an employer’s choice of pay dates and their employee’s entitlement to universal credit. Although the recent budget did include some changes to universal credit, this particular problem wasn’t addressed. So, what can employers do about it?
Universal Credit is a monthly payment that is replacing six benefits, including Working Tax Credit and Child Tax Credit. It gives essential support for people who need it, including those in low paid jobs. However, the way it is calculated makes it highly sensitive to the exact dates when the worker is paid. As a result, employers choosing certain pay patterns can inadvertently make life very difficult for staff who receive Universal Credit.
The Chartered Institute of Payroll Professionals (CIPP) is the chartered association for payroll, pensions and reward professionals in the UK. This year, the CIPP has chosen to shortlist The Payroll Site for an award.
I am a member of the Chartered Institute of Payroll Professionals (CIPP). Like most professional associations, it runs training courses and keeps its members updated with the latest industry news.