The issue of employees in receipt of Universal Credit (UC) suffering financial penalties as a result of the payment of the backpay element of the NJC pay award has been raised by a number of school support staff employees with their MPs, who have subsequently approached Ministers at DfE. Of course, employees other than school support staff will also be facing the same issue.
Ministers are keen that all employers, including third-party payroll providers, are reminded of the discretion available to them to stagger the payment of backpay over a number of months, so as not to impact negatively on an employee’s UC payments. This is especially important as Christmas approaches.
Employers should advise all employees affected by this issue to speak to their Universal Credit Work Coach via their online account or call the Universal Credit Helpline on 0800 328 5644.
From the LGA