In August 2024, Universal Credit claimants will experience changes to their payment dates due to the bank holiday. The adjustment by the Department for Work and Pensions (DWP) aims to ensure that claimants receive their benefits on time.
However, these changes might not make it easier for some people. Moreover, they also highlight ongoing criticisms of the Universal Credit system, particularly regarding its flexibility and responsiveness to claimants’ needs.
When will Universal Credit be paid in August?
The bank holiday in question falls on Monday 26 August 26 2024. Typically, the DWP would normally schedule Universal Credit payments to be sent to claimants on this date. However, due to the bank holiday payments that would normally be made on Monday will be brought forward to Friday 23 August 2024.
This adjustment ensures that claimants have access to their funds before the long weekend, thereby preventing any financial strain that might arise from a delay in receiving their benefits.
While this measure by the DWP is intended to mitigate potential issues, it also underscores the rigid nature of the Universal Credit payment schedule. For many recipients, even a slight delay can have significant consequences, highlighting broader concerns about the system’s ability to accommodate the diverse needs of its users.
The DWP’s change of date in August will have a direct impact on claimants – meaning they may have to make their money last longer, or it may impact them if they are self-employed or employed.
Broader criticisms of Universal Credit
The coalition government introduced Universal Credit in 2013. It was designed by Tory Iain Duncan Smith’s think tank to simplify the benefits system by merging six different benefits into one. However, since its inception, claimants and charities have criticised it.
One of the most persistent criticisms of Universal Credit is the delay in receiving the first payment. New claimants often have to wait five weeks or more for their initial payment, a period during which many struggle to cover basic living expenses.
This wait has led to increased reliance on foodbanks, short-term loans, and has pushed some claimants into debt. Although advance payments are available, they must be repaid from future benefits, further reducing the already limited funds available to recipients.
Inadequate DWP support for chronically ill and disabled people
Critics argue that Universal Credit does not adequately support vulnerable groups, including chronically il and disabled people, and single parents. The system’s one-size-fits-all approach often fails to consider the specific needs of these individuals, leading to additional financial and emotional stress.
For example, the requirement for online applications and digital literacy poses a significant barrier for those without access to or familiarity with technology.
The system’s reliance on sanctions and conditionality has also been a focal point of criticism. Claimants are required to meet certain conditions, such as actively seeking work, to continue receiving benefits. Failure to comply can result in sanctions, which reduce or stop payments.
These punitive measures have been shown to exacerbate financial hardship and can be particularly harsh on those who are already struggling to meet the basic requirements due to personal or health-related issues.
Another contentious aspect of Universal Credit is its impact on employment and earnings. While it was intended to make work pay, the taper rate (the rate at which benefits are reduced as earnings increase) has been criticised for being too steep.
This means that for every pound earned, 55p is deducted from benefits, which can disincentivise additional work and limit opportunities for financial advancement.
Universal Credit August payment: still not fit for purpose?
The adjustments to Universal Credit payment dates in August 2024 due to the bank holiday provide a temporary solution to potential payment disruptions.
However, these changes also serve as a reminder of the broader systemic issues within Universal Credit. Delays, inadequate support for vulnerable groups, harsh sanction policies, and counterproductive impacts on employment and earnings continue to plague the system.
Featured image via the Canary
