Universal Credit claimants to lose out due to "lump sum" back pay, says MLA

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Education workers who rely on benefits to top up their wages are set to lose out due to the way they're receiving back pay, an MLA has warned.

Foyle MLA Mark H Durkan said a "long-overdue" payment due to be "hitting bank accounts this week" is already causing issues for staff in receipt of Universal Credit, because it's being paid into accounts as a lump sum.

The SDLP MLA said that will mean some workers will get a "nil award" in the benefit payment for a month or even more, as he criticised the Department of Education for failing to pay the workers the money they're owed on a "phased" approach instead.

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The payment is owed to education workers following an agreement between school employers and trade unions.

Mr Durkan had previously written to the Education and Communities Ministers urging equitable access for all staff.

In a statement, The Foyle MLA said: “The long-overdue EA Support Staff payment will be hitting bank accounts this week and as welcome as it is, it's already causing issues for staff in receipt of Universal Credit.

“The lump sum nature of the backdated payment will result in nil award for a month or more for UC claimants. This has been a recurring problem that continues to cause real financial stress. I've repeatedly written to the Health Minister to resolve this issue for NHS staff, to the Education Minister and to the Communities Minister who should be working to implement a fix."

Mr Durkan continued: "One fair and workable solution would have been a phased payment approach but Ministers have claimed this would be too complex and could cause delays. There’s nothing ‘fair or just’ about a backdated lump sum payment for these staff within the current welfare system. It will essentially wipe out their next Universal Credit award and increase their tax, national insurance and pension contributions. How is this acceptable? Failure to implement a phased payment approach has continued to adversely impact public sector staff."

He added: "Is this really how we repay our hardest working and lowest paid staff from nurses to school support staff? These workers are pillars within our schools providing a supportive and nurturing environment for pupils. They shouldn't be penalised for finally receiving what they're owed.”

In response to a written query from Mr Durkan, Education Minister Paul Givan said in February: "The Pay & Grading settlement is a collective agreement between my Department, Management Side and the Trade Unions and I am committed to ensuring that payments are made in line with this agreement.

"Officials in the Department and the Education Authority (EA) have investigated the impact that backdated or one-off payments may have on employees who claim means-tested benefits. However, the EA does not hold the information that would identify the employees affected and benefits such as Universal Credit apply in different ways to different individuals. Therefore, there is no way to know what adjustment to pay would be required for anyone affected by this. Trying to tailor payments on an individual basis would significantly complicate the process and lead to capacity issues for those administrating the pay roll."

The Minister added: "The UK NJC National Employers examined this issue as part of their last pay settlement and concluded that it would not be feasible for employers to resolve this issue through phased payments. Their advice is that any employees affected by this should speak to their Universal Credit Work Coach via their online account at Universal Credit Service Centre | nidirect."

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