Auto reclaim for UC is back.

DWP Confirm that #UniversalCredit claims stopped by higher earnings will not have to reclaim in following period, but auto-reclaim will happen.

“As part of this strategy, we have just written to the Committee explaining that we have laid the Universal Credit (Coronavirus) (Self-employed Claimants and Reclaims) (Amendment) Regulations 2020. These regulations have been brought in using the urgency provisions because HMRC has been able to introduce the Self Employment Income Support Scheme (SEISS) earlier than had originally been announced by the Chancellor of the Exchequer. The regulations clarify that the payment from the SEISS will be treated as self-employment income in the usual way, and that payments from the Coronavirus Job Retention Scheme to a self-employed person, to fund the pay of their employees’ will be ignored in the calculation of the Universal Credit award.

Where a payment from the Coronavirus Job Retention Scheme is used to fund earnings, the earnings of the employee will be taken into account in the calculation of entitlement to Universal Credit in the usual way. The intention being that payments to self-employed people and employees should mirror the way equivalent income is treated in Universal Credit.

These regulations also introduce an important easement which means that we will not automatically be closing claims where earnings exceed the claimant’s entitlement, thereby making it easier for awards of Universal Credit to be re-instated without the need for claimants to make a new claim. This also applies to people who are affected by the surplus earnings rules.”

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