Universal Credit is a
new monthly payment for those on a low income
or are out of work. It
replaces the previous system which involved a 16 hour a week rule which
resulted in some workers restricting the hours they worked to avoid losing
their benefits. Universal Credit aims to ensure that individuals will be better
off in work than on benefits.
This new system should have a
positive impact for employers in that it should:
be easier to find workers who are
willing to consider short term or irregular work
result in part time employees being willing
to do more overtime and extra shifts at peak
times and avoid you incurring additional overheads and the risks associated with recruiting and training new staff to
fill these gaps
payments are linked to how much money an employed Universal Credit recipient
has earned. Changes in the way you report PAYE information to Her Majesty’s
Revenue and Customs (HMRC) in real time have been made to facilitate this. As
an employer HMRC requires you now to send in PAYE information about every
payment you make to employees at the time you make it. PAYE information
relating to Universal Credit claimants is sent by HMRC to the Department for
Work and Pension.
For more information on reporting PAYE in
real time, go to the
or if you require assistance with any other queries please contact us.
Pam Loch, Managing Director of niche employment law practice, Loch Associates Employment Lawyers and Managing Director of HR Advise Me Limited.