UNIVERSAL Credit was dealt a massive blow today after four courageous single mums won a court challenge when they argued that the system is unfair.
Their stunning victory could spark major changes in how the controversial benefits system works.
The mums said they were penalised because of the way the system worked out their pay – leaving their payments fluctuating wildly and completely unable to calculate how much they would get every month.
They say they were struggling financially and had "severe cash flow problems" because of the way their payments were calculated.
The ruling throws a spanner in the works of the DWP's whole strategy for Universal Credit and could see thousands get extra money each month.
Danielle Johnson, Claire Woods, Erin Barrett and Katie Stewart are all caring for kids – and argued that the fixed monthly assessment periods were unfair because sometimes they got paid twice within the same period.
The High Court judgement from Lord Justice Singh and Mr Justice Lewis said The Secretary of state was "wrong" in reading the laws and regulations.
The desperate mums were forced to turn to foodbanks, are drowning in debt and being made poorer by the new system.
Officials concluded that the DWP was incorrect to say that two salaries for two different months should slash benefits just because they came in a few days later.
The department had argued it was the fault of employers, not them, but this was rejected.
More than one million people are currently on Universal Credit – and tens of thousands could be affected by today's dramatic ruling.
Child Poverty Action Group solicitor Carla Clarke welcomed the "common sense" judgment today.
She said: "Working parents on low incomes should not lose out on the support that Parliament intended them to receive because the DWP has designed a rigid process that is out of step with both actual reality and the law.
"Today's result should mean that in future no one will lose out on their Universal Credit awards or face the hardship that my clients have faced simply because of when their payday happens to fall.”
And Labour's Margaret Greenwood said it was a "disgrace" that the mums had to go to court in the first place.
She said: "The rigid assessment system cannot cope with something as basic as incomes that fluctuate from month to month. The High Court’s ruling confirms once again that Universal Credit is failing people on low pay and pushing many into hardship simply because of when their payday falls."
The news comes after The Sun launched its Make Universal Credit Work campaign last month, demanding ministers make more changes to the system to help struggling Brits.
The Sun has demanded that ministers make vital changes to the system before it’s too late.
We’ve told heartbreaking tales of how Brits are drowning in thousands of pounds worth of debt waiting for help, and have had to give up work due to the complicated childcare system.
And Tessa Gregory, solicitor from Leigh Day who represented Ms Danielle Johnson, stated today: "My client is a hard working single mum doing her very best to support her family.
"She is precisely the kind of person Universal Credit was supposed to help, yet the DWP designed a rigid income assessment system which left her £500 out of pocket over the year and spiralling into debt due to a fluctuating income.
"Quite rightly the Court has found that the Secretary of State has been acting unlawfully and ruled that a correct interpretation of the regulations would not lead to such absurd results."
Ms Rudd refused to comment on the ruling today, telling reporters: "I’m going to have to consider it in the department and then we will be coming forward with what our response is going to be."
But David Finch, Senior Research Fellow at the Resolution Foundation, said: “Today’s High Court Ruling is very significant with major implications for the fundamental operation of Universal Credit."
It's just one of several times the DWP has been taken to court in recent months – and been forced to make major changes as a result.
It comes on the same day that the DWP boss has revealed changes to the flagship welfare system.
She revealed she will scrap the planned extension to the two child benefit cap, and will do a pilot of paying Brits more frequently – which could slash the time waiting for payments.
What does this ruling about Universal Credit mean?
So your assessment period might be from 1 January to 1 February.
But where a claimant’s monthly payday is on or close to the first day of their assessment period they may be paid a day or two early some months.
They are then recorded as having had two paydays in one assessment period and none in the one after or before.
This means that some families are missing out on hundreds of pounds of benefits every year – just because of when their pay day falls.
The DWP say: "You will need to be prepared for a month when you get 2 earnings payments in one assessment period and budget for a potential change in your monthly Universal Credit payments".
They also say: "Speak to your work coach if there is a gap in your Universal Credit payments and you need help to budget and manage your money more effectively"
Today's judgement said that was wrong – and that "there may need to be an adjustment" where the actual amounts don't reflect the exact month.
Another court hearing will happen soon to work out what this means and what the DWP will have to do to fix the problem.
Source: Read Full Article