We ask Government to review Universal Credit assessment rules and introduce an optional monthly earnings averaging method for claimants with regular monthly pay to reduce artificial fluctuations caused by assessment period timing.

Many claimants are paid monthly, but Universal Credit assesses earnings by fixed assessment periods linked to payment dates reported via HMRC RTI. This can cause artificial fluctuations in entitlement, including months with £0 payments or adjusted overpayments, despite stable income. We believe an optional monthly averaging method would better reflect real earnings and improve financial stability for working households.