More than 85,000 Universal Credit claimants in the UK will see their payments rise from Monday after the Department for Work and Pensions (DWP) addressed an 'unfair' loophole that had cost people thousands of pounds. The change, effective from November 16, ensures that claimants who receive two monthly salary payments in a single assessment period will no longer be penalised.
Under the previous rules, workers paid twice in a month—often due to bank holidays or employer timing—were flagged as 'over-earning' by the DWP system, leading to reduced or even zero benefit payments. This left many vulnerable families without support for an entire month, forcing some into rent arrears, debt, and reliance on food banks.
The loophole was challenged in June by four single mothers at the Court of Appeal, who won their case. The judge described the system as 'irrational and unfair', pushing families into poverty. The DWP was ordered to fix the flaw, and the new regulations now reallocate one of the two payments to the following assessment period, ensuring consistent benefit levels.
However, the adjustment is not automatic. Claimants affected must notify the DWP via their Universal Credit journal or by phone, providing wage slips as evidence. The Child Poverty Action Group advises acting as soon as a lower-than-expected payment is noticed, rather than waiting for the payment to arrive.
Minister for welfare delivery Will Quince said: 'Universal Credit is a flexible benefit, and we continue to make changes and improvements to make sure people have the best experience possible. This change will give stability to people if they’re paid two pay cheques in a single assessment period.'
Peter Tutton, head of policy at StepChange, welcomed the change but urged the DWP to address similar issues for those paid weekly, fortnightly, or with irregular incomes. The new rules apply only to monthly-paid employees.
