Four working single mothers have won a High Court challenge against the government over universal credit payments. The women argued that a 'fundamental problem' with the system caused their monthly payments to fluctuate wildly, leaving them out of pocket and struggling financially.
The issue arises when employers pay claimants early due to weekends or bank holidays, causing the system to count two payments in one assessment period and drastically reduce universal credit. This has left some mothers falling into debt or relying on food banks.
Solicitor Tessa Gregory of Leigh Day, representing one of the mothers, said her client was 'precisely the kind of person universal credit was supposed to help' but was left £500 out of pocket. Carla Clarke of the Child Poverty Action Group called the system 'out of step with both actual reality and the law'.
A Department for Work and Pensions spokesman said it was 'carefully considering the court's judgement'. The ruling came as Work and Pensions Secretary Amber Rudd announced a raft of changes to universal credit and delayed the transfer of three million people onto the scheme. Shadow work and pensions secretary Margaret Greenwood said the ruling 'confirms once again that universal credit is failing people on low pay'.
The two High Court judges concluded the work and pensions secretary had 'wrongly interpreted' regulations. The government could face hundreds of millions of pounds in costs to fix the system and compensate affected claimants.
