[UK] Universal Credit and childcare

Payroll professionals will / should have heard of Universal Credit.  This is the Department for Work and Pension’s welfare system that is underpinned by earnings information supplied by Real Time Information (RTI).

 As more and more people are transitioned onto the system, this means that there are more and more of our workers who may come to their payroll professionals querying the RTI information.  This is sent by employers to HMRC who then pass on certain parts of that information to the DWP.  The DWP assess the earnings and regulate the individual’s entitlement or non-entitlement to the Credit.

So any information that comes out from the DWP about the Credit should be read with more than a passing glance.  After all, it is a welfare payment that employers input into. 

On the 16th of October 2019, the DWP updated their “Universal Credit: childcare guide”.  If individuals are working, they may be able to get support with the childcare costs paid to a registered or approved childcare provider.  The guidance was updated to say that individuals will need to report the full cost of the childcare before the end of the Universal Credit assessment period which immediately follows the assessment period the childcare costs were paid in.  Individuals can do this by signing in to their Universal Credit account.  

Global Payroll Association Comment

We are not saying that payroll professionals have to become experts in Universal Credit.  But given that more and more people on our payrolls are moving to the welfare payment system, it is responsible to have an idea about it.

Most important is to recognise that there are many workers on our payrolls who may be in receipt of the Credit and therefore may have their welfare payment determined by the information we are submitting via RTI.

Payroll professionals will / should have heard of Universal Credit.  This is the Department for Work and Pension’s welfare system that is underpinned by earnings information supplied by Real Time Information (RTI).

 As more and more people are transitioned onto the system, this means that there are more and more of our workers who may come to their payroll professionals querying the RTI information.  This is sent by employers to HMRC who then pass on certain parts of that information to the DWP.  The DWP assess the earnings and regulate the individual’s entitlement or non-entitlement to the Credit.

So any information that comes out from the DWP about the Credit should be read with more than a passing glance.  After all, it is a welfare payment that employers input into. 

On the 16th of October 2019, the DWP updated their “Universal Credit: childcare guide”.  If individuals are working, they may be able to get support with the childcare costs paid to a registered or approved childcare provider.  The guidance was updated to say that individuals will need to report the full cost of the childcare before the end of the Universal Credit assessment period which immediately follows the assessment period the childcare costs were paid in.  Individuals can do this by signing in to their Universal Credit account.  

Global Payroll Association Comment

We are not saying that payroll professionals have to become experts in Universal Credit.  But given that more and more people on our payrolls are moving to the welfare payment system, it is responsible to have an idea about it.

Most important is to recognise that there are many workers on our payrolls who may be in receipt of the Credit and therefore may have their welfare payment determined by the information we are submitting via RTI.