18th December 2025
Warning for workers claiming Universal Credit who are paid early at Christmas
Act now to avoid a reduction in your Universal Credit payment
Employees who are paid early at Christmas may be affected by the design of the Universal Credit system whereby claimants may be treated as receiving two monthly wages in one assessment period, resulting in a dramatically reduced or even nil Universal Credit award.
This can be especially challenging if you have a childcare bill due for payment in January and are relying on the Universal Credit payment to help budget for that outgoing payment.
The reason this happens
Universal Credit (UC) operates on the basis of a monthly ‘assessment period’. For example, if you claim Universal Credit on the 27th of the month, your assessment period will run from the 27th to the 26th of the following month. When the assessment period ends, the amount of Universal Credit payable is calculated from the maximum amount of Universal Credit payable, less any income or earnings received.
Claimants who are in work and are paid monthly, usually each month’s net pay should fall neatly into each assessment period and your Universal Credit payments should not vary significantly from month to month if your net pay remains broadly the same.
However, we know that at Christmas some employers process wages early for staff. This can result in two monthly pay packets falling within the same Universal Credit assessment period. This mean that claimants would receive a reduced or nil award for that assessment period, because it looks like they have earned double their normal wage.
What you can do if you are affected
To address this issue, the Department for Communities is allowed to use its discretion to prevent a reduced Universal Credit award in certain circumstances.
According to official information on NI Direct: If you are paid monthly, there may be times when you receive two payments of your wages in a Universal Credit assessment period. If this happens, send a message in your UC journal or phone the UC Service Centre’ on freephone: 0800 012 1331.
In these circumstances it may be possible for Universal Credit payments to be adjusted so that you get your usual amount, and the relevant pay packets will be allocated to the appropriate assessment period.
By taking this action, Universal Credit claimants should have more certainty about their finances over Christmas and so reduce any distress and hardship that might otherwise be caused.
Unfortunately, this issue doesn’t just happen at Christmas
Workers who are paid weekly, every 2 weeks or every 4 weeks also have their Universal Credit affected at certain times of the year if they have more paydays than usual during an assessment period.
| How often your payday is | How often this will impact your Universal Credit award |
| Every 4 weeks | Once a year, you’ll have a UC assessment period with 2 paydays |
| Every 2 weeks | Twice a year, you’ll have a UC assessment period with 3 paydays |
| Every week | Four times a year, you’ll have a UC assessment period with 5 paydays |
If this issue is affecting you contact Universal Credit through your UC journal or phone the UC Service Centre on freephone: 0800 012 1331. For additional information on Universal Credit and other forms of support for registered childcare costs contact the Family Benefits Advice Service at fbas@employersforchildcare.org.