A question about : Warning! Big benefit payments shake-up: frequency and pay-day will change for most
Monday 6 April 2009
Update Tuesday 5 May 2009: A few weeks ago we warned about a new benefits payments shake-up, where the frequency and payment dates will alter for most people receiving certain benefits; possibly meaning a one-off three-week gap of payments when the changes take effect.
However the Department of Work and Pensions (DWP) press office has assured us that no one will experience a gap of three weeks when the new payment procedures take effect, as the three changes involved will not happen simultaneously but at various stages over the next two years.
The longest point you will go without payment is a week, though as explained below in the original note you can take out a repayable loan for this. This post has been updated to reflect the new information though, sadly, the details aren't available on the DWP or Job Centre Plus websites at present.
What's this about?
This April sees the beginning of a big benefits payments procedural shake-up, between now and March 2011.
If you receive jobseekers allowance (JSA), incapacity benefits, income support, severe disablement allowance, bereavement benefit or widows benefit, your payment day and frequency will be altered at some point during the two-year roll out.
Those getting attendence allowance, disability allowance or carers allowance won't be affected.
What are the changes?
There are three stages to the changes:
Stage 1: If you're paid weekly in advance, your payments will change to weekly in arrears. But as this means you'd be going without your usual money for a week, for the payment before the change happens, you'll get double the amount of benefits - one set you're due and another that you WON'T have to pay back.
Stage 2: At a later date it'll change again, to fortnightly in arrears. This means there WILL be a week where you'll be without usual funds, but you'll be offered a loan, worth one week's benefits, to tide you over.
If you're already paid weekly in arrears (some people who started receiving benefits after 1995 will be), the first change will be to move you to fortnightly in arrears. Again you'll be offered a loan worth one week's benefit to help with the change.
Stage 3: For everyone, the day of the week you get paid may change too as your national insurance (NI) number will be used to determine which day you should be credited with funds. If you're already receiving benefit payments fortnightly in arrears (there are a few people who are), than this is the only change that'll affect you.
If the final two digits of your NI number ends between...
00 and 19, your payment day will change, at some point, to a Monday
20 and 39, to a Tuesday
40 and 59, to a Wednesday
60 and 79, to a Thursday
80 and 99, to a Friday
Thus if you're usually paid on a Monday but your NI number ends between 80 and 99, there''ll be a one-off gap of four days when this changeover takes effect. For others with different payment days, the gap will be less.
Don't get caught out
You'll receive a notification outlining the changes in advance. Then the Job Centre will send out a warning letter four weeks before you'll be personally affected. The info will include how to apply for an interest-free loan from the DWP if you think the one-off week gap between changing from weekly to fortnightly in arrears will cause you hardship.
But you must apply for the loan - it won't be given automatically. It'll cover a full week's missing benefit amount but will have to be repaid in six fortnightly payments, debiting directly from future benefit payments.
To prepare your finances in advance, use the Free Budget Planner to limit the disruption.
Related Guides: Five-Minute Benefits Check-Up, Grant Grabbing
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Best answers:
- Maybe it's me! but I thought change like this should be made public more clearly. i.e. Print in Newspapers etc and through the media. Until I read your story, I had never heard these changes. How many others like me who rely on monies coming through on a certain day and made arragements like standing orders. This now means I have to go and change every thing or get nasty letters saying I haven't paid bills. Would our M.P.s like to have there systems altered by just a letter a fews weeks before they get there expensis, saying it will now be paid 2 or 3 weeks later than they do now?
Thanks again Martin. You give so much more information than any site I know of and it's always been usfull. No. I'm not sucking up. People like me that are disabled need to know these things, not that I'm saying others not in my predicament don't benefit. - Many thanks for this information. My DD gets IB due to having two chronic lifetime illnesses. She is very astute and normally would have picked up on this had it been advertised clearly!!
Once again many thanks - :confused: did nobody get a letter then...because i certainly did.
- Can you tell me the official government web site this info came from, as I work with people who are on low incomes and on benefits and need more info.
Thanks - Oops! I just deleted a post having a go about pensions, but I see this change is about benefits, not pensions.
Mind you, some years ago, when I applied for Carers' Allowance when my wife was ill, having given up a part-time job as a taxi driver, I was told that I couldn't have any because my benefits were already more than the allowance. The "benefits"? My State Pension.
They change the definition to suit themselves so I'm not holding my breath! - In fariness, that do write at least a month before they are going to start changing it over.
I had a letter a good few weeks ago saying it was on its way and I received on two weeks ago saying the changes will be happening in May.
It outlines what we be paid and when, and includes a form to ask for the loan (you simply sign and return it) and exactly how teh loan will be repaid.
A loan for Ј60 will be repaid over 6 benefit payments (so 12 weeks and starting at the end of May), so it's hardly crippling!
It is on top of any other loan repayments though, so perhaps more difficult for those repaying crisis loans for example.
I'd be the first to argue against this if it was just slapped in place at a moments notice, but that has not been the case, for me at least! - Being on benefits does not mean you are retarded or incompetent. You can manage your affairs if you like.
And if you choose not to manage things then you are used to regularly spending all your money the day you receive it. Living on nothing for six days is not significantly different from living on nothing for thirteen or twenty days.
There is no story. There is nothing to see here. Move along. - My husband receives his Incapacity Benefit every four weeks. Will this affect him in any way?
Need to know for budgeting purposes! - All those that get transfered to the new system please let us know how smoothly it goes. Also let us know if you had any problems with the loan.
I have been receiving incapacity benefit for the last 5 years , also claiming council tax benefit and housing benefit. They have constantly made errors in their payments and messed me around and mucked up my finances so I am concerned.
It always seems to me that those of us that actually need help are treated like fraudsters and liars and those that know how to play the system and commit fraud actually get away with it. - Why should people only get a loan for the period they are being left without - Shold be a grant they are entitled to that money after all.
I have not recieved any letters ... yet. - Would somebody please tell me why the government can't 'merge' the two systems.
It works like this, say your being paid (currently) fortnightly one week in advance one week in arrears. For this person you'd start the new system rolling one week previous than you would normally, so as to eliminate a gap in payments. Adjusting the starting point of the new system to each persons needs.
Yes, there would be an overlap in systems, but not in payments - and no gap in benefits received, so no hardship (not increased at least).
The only cost involved would be running two systems side by side during the changeover, peanuts to what's been given/lost to the banks, and there's plenty of labour out there at the moment
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