These women all had monthly pay days that “clashed” with the dates of their monthly Universal Credit assessment periods.  

This meant that if they were paid early in some months (for example, if their pay day fell on a weekend or bank holiday) they were treated as having two wages in one period.  

This then drastically reduced their award and left them receiving nothing in Universal Credit the following month. It also meant that the mothers lost their work allowances, leaving them hundreds of pounds per year worse off.

They argued a "fundamental problem" with the system meant their monthly payments varied "enormously", leaving them out of pocket and struggling financially.  Lawyers for the women said the problem was likely to affect "tens of thousands of people" claiming the benefit.

What is Universal Credit?

Universal Credit is the controversial new benefit which is currently being rolled out for new claimants throughout Northern Ireland.  It will eventually replace the “legacy benefits” of Income-related Jobseekers Allowance, Employment Support Allowance, Income Support, Housing Benefit and Child and Working Tax Credits.  It is available to those both in and out of work.

Universal Credit was designed to simplify the benefits system however it has been heavily criticised and plagued with problems since its introduction.

How is Universal Credit paid?

One of the main problems with Universal Credit has been with payments. Delays of 6 weeks from initial claim are reportedly causing debt, hunger and hardship to some of society’s most vulnerable.

Last week it was reported that Mark Scholfield, from South London, a cancer patient who was terminally ill when he claimed the benefit did not receive it until the day after he died, meaning that he spent his last weeks “penniless” and having to worry about completing applications and assessments. This is deeply troubling and tragic, yet sadly not an isolated incident.

There are also issues for those who are self-employed and whose income/ hours of work/ pay days fluctuate. It has been reported that there has been a marked increase in homelessness since the benefit was introduced.

What were the issues in this legal challenge?

It was argued by the mothers in this current case that flaws in the system denied working parents the additional financial support they are entitled to and left some people falling into debt to the extent that they had to choose between paying their rent and childcare costs.

It was argued by the government that despite the hardship being caused, the way the payments were made was lawful and these issues should be rectified by employers and not the Department. It was further argued that to amend the system there would be a significant cost to the Department.

The High Court ruled that, despite the administrative difficulties and cost issues, the Department were applying the law surrounding Universal Credits in a way that was unlawful and nonsensical and that this had caused severe cash flow problems for claimants living on low incomes.  The Court has ruled that this must change.

What does this mean for us in NI?

It is yet to be seen if the government is going to appeal the judgment, but it is hoped that they will not and that a change can be made to claimants UK wide. However, given the cost and administrative consequences for the government, it remains likely that it will take some time for any change to be implemented, even if the judgment is not appealed.

Last week, the government announced plans to halt the move to Universal Credit until next year for those in Northern Ireland currently receiving the legacy benefits.   This is somewhat comforting, however, those people in Northern Ireland who are making new claims or reporting changes of circumstances are still moving to the new benefit with immediate effect.

The case illustrates the importance of litigation in the area of Social Security Law. This is particularly so in Northern Ireland where both the current political impasse and our own unique circumstances set us apart from the rest of the United Kingdom and require specific attention by the Courts. Anyone who is affected by this or any other issue concerning Universal Credit in Northern Ireland should seek advice as soon as possible.