Group Home > Housing Services > Paying your Rent > Big Benefit Shake Up

Big Benefit Shake-up!

What's this about?
April 2009 saw the beginning of a big benefits payments procedural shake-up, with changes being made until March 2011.

If you receive jobseekers allowance, 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.

People who are getting attendance allowance, disability allowance or carers allowance won't be affected.

What are the changes?
If you're paid weekly, payments will change to fortnightly and you'll now be paid in arrears; which means some people could be left for up to three weeks without any income.

The day of the week you get paid may change too as your national insurance number will be used to determine which day you should be credited with funds.

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

Don't get caught out
The Job Centre will send out a warning letter four weeks before you'll be personally affected by the change. The information you will receive will include how to apply for an interest-free loan from the Department of Work and Pensions, if you think the changes will cause you hardship; especially for those who may face a one-off gap of nearly three weeks between benefit payments during the changeover period.

But you must apply for the loan - it won't be given automatically. It'll cover the full missing benefit amount but will have to be repaid in six fortnightly payments, debiting directly from future benefit payments.

Contact the Job Centre Plus for more information on 01634 810200 or help online at:
http://www.jobcentreplus.gov.uk/JCP/Customers/WorkingAgeBenefits

(Taken from moneysavingexpert.com 6 April 2009 – Martin Lewis)