An apprenticeship can lead in all sorts of directions. Some people move into a permanent job. Others start taking on clients, freelance projects or contracts of their own. A hairdresser might build a client list, a graphic designer might take on a first commission, or someone in construction might be asked to price a job outside their usual work.
Sending that first invoice can feel like a milestone. It is proof that somebody values what you can do. But it can also be the moment you realise how much sits behind getting paid.
There is the equipment or software you paid for yourself. The journey you forgot to include in your quote. The client who pays later than expected. And the question that arrives when the money reaches your account: how much of it is actually yours to spend?
These challenges are not confined to one trade or profession. The details vary, but anyone moving from an apprenticeship into self employment needs to think about pricing their time, keeping records and managing an income that may change from month to month. Some will do this full time; others will start with occasional work alongside a job.
The small habits matter early on.
Keeping invoices and receipts, recording what you have been paid and noting what you have spent on work can feel excessive when you are just starting out. It becomes much harder to untangle later, particularly when it is time to complete a tax return. A simple system you can keep up with is better than a perfect one you abandon after a fortnight.
Then there is the gap between earning money and having money available. You might need to buy supplies before a customer pays, or go several weeks between projects. Putting some money aside for tax and quieter periods takes practice, especially when this is your first experience of setting your own prices.
For people receiving Universal Credit, there are extra questions. Self-employed income and expenses generally need to be reported each month, even though tax returns follow a different timetable. Some people who are treated as gainfully self-employed may also be affected by the Minimum Income Floor after any applicable start-up period. Their Universal Credit could then be calculated using an assumed level of earnings, even in a month when they earned less. Understanding how this applies to your own circumstances matters before you count on Universal Credit to cover a quiet month.
None of this is an argument against working for yourself. It can offer flexibility, independence and the chance to shape a career around your skills. But learning how to do the work is only part of the preparation. Young people also deserve to know how to quote for it, get paid for it and handle the responsibilities that come with it.
That is why Society Matters’ Apprenticeship Success Series includes Going Self-Employed: What Every Young Person Needs to Know. This practical half-day workshop uses real-life examples and activities to explore irregular income, keeping records, tax responsibilities and how self employment can affect Universal Credit. Participants also receive materials they can use afterwards, including a self-employment starter guide, an HMRC registration checklist, a simple business budget planner, a monthly income tracker and guidance on receipts and allowable expenses. The aim is to help them make an informed choice and know where to turn for support as they take their next step.
Need a session tailored to your apprentices?
We specialise in Bespoke workshops! Email us at hello@societymatterscic.com to have a chat about what would be useful for your group.
The article aims to raise awareness, address common misconceptions and help ensure that people living with advanced cancer or another life-limiting illness receive the support available to them when it matters most.
When someone is living with advanced cancer or another life-limiting illness, navigating the benefits system can feel overwhelming. Yet many people are unaware that financial support may be available through the Department for Work and Pensions’ Special Rules for End of Life.
Research from Marie Curie suggests that one in three people who die from a chronic illness in England and Wales do not claim the benefits potentially available to them under the Special Rules. This equates to approximately 120,000 people each year missing out on vital support.
In this joint article, Society Matters and Tenovus Cancer Care explain the role of the SR1 form, who may qualify and how individuals, families and professionals can make the process as straightforward as possible.
What is an SR1 form?
The SR1 is a medical evidence form used to support a benefit claim under the Special Rules for End of Life. It provides the DWP with information about a person’s diagnosis, the progression of their illness and any treatment they are receiving.
The form must be completed by an appropriate healthcare professional, such as:
a GP
a hospital consultant
a specialty or hospice doctor
a senior specialist nurse, such as a clinical nurse specialist or advanced nurse practitioner.
The healthcare professional will usually send the SR1 directly to the DWP, although it may sometimes be given to the patient or their representative.
An important point is that completing an SR1 does not automatically start a benefit claim. The relevant benefit must still be claimed, and the claimant or their representative should make clear that they are applying under the Special Rules.
Who can qualify?
In England and Wales, the Special Rules apply where a person has a progressive disease and, as a consequence of that disease, it would not be unexpected if they died within 12 months.
This does not mean that a healthcare professional must provide an exact prognosis. DWP guidance encourages clinicians to consider whether they believe that their patient would live longer than 12 months.
Prognosis can be particularly difficult to predict with cancer, where people respond differently to treatment. There are no negative consequences for the patient or clinician if someone lives longer than expected.
People may also qualify while receiving ongoing treatment, including palliative chemotherapy, immunotherapy or radiotherapy. Receiving treatment does not automatically prevent the Special Rules from applying.
The change to the 12-month rule
The Special Rules were previously based on a six-month life expectancy. This was extended to 12 months:
from April 2022 for Universal Credit and Employment and Support Allowance
from April 2023 for Personal Independence Payment, Disability Living Allowance and Attendance Allowance.
The previous DS1500 medical form has also been replaced by the SR1.
Although the change has enabled more people to access support, campaigners argue that the fixed 12-month definition remains restrictive. In Scotland, there is no fixed timescale for devolved disability benefits. Instead, eligibility is based on a clinician’s judgement that the person has a terminal illness.
Which benefits are covered?
An SR1 can support a Special Rules claim for:
Personal Independence Payment (PIP)
Attendance Allowance
Disability Living Allowance for children
Universal Credit
New Style Employment and Support Allowance (ESA).
The person must still meet the wider conditions of the benefit they are claiming. For example, Universal Credit is means-tested, while New Style ESA normally depends on the claimant’s National Insurance record.
The SR1 is therefore not a benefit in itself or an automatic entitlement to every form of support. It is medical evidence that allows eligible claims to be considered under a quicker and more supportive process.
An SR1 may also help someone access other local support. Councils can use it to fast-track a Blue Badge application where a terminal illness seriously affects mobility. A growing number of councils in England and Wales also offer terminally ill residents a Council Tax discount or discretionary relief, sometimes reducing the bill to zero. These schemes and their eligibility rules vary, so individuals and families should check what is available from their local council.”
How is the process different?
Depending on the benefit being claimed, the Special Rules can mean:
faster processing
fewer application questions
no usual qualifying period
no medical assessment in most cases
automatic entitlement to particular components or groups
higher rates of some benefits.
For PIP, someone accepted under the Special Rules automatically receives the enhanced rate of the daily living component. The mobility component is considered separately, so it remains important to explain any difficulties with moving around or planning and following journeys.
Attendance Allowance is normally awarded at the higher rate. For Universal Credit, the person should be treated as having limited capability for work and work-related activity, meaning they should not be expected to look for or prepare for work. Equivalent protection applies through the support group in New Style ESA.
What information does the SR1 include?
The healthcare professional will be asked to provide information about:
the person’s diagnosis and other relevant conditions
the date of diagnosis
whether the person is aware of their diagnosis and prognosis
when they were first thought to meet the Special Rules criteria
the clinical features showing that the condition is severe and progressive
treatment received, ongoing or planned.
The date on which the clinician believes the person first met the criteria can be important because it may affect when benefit entitlement begins.
What does the SR1 cancer-specific question mean?
Where someone has cancer, the SR1 asks for more specific information about the condition. This can include the type and stage of cancer, whether it has spread, how the person has responded to treatment and whether further treatment is planned.
A cancer diagnosis alone does not automatically mean that the Special Rules apply. The information should provide a clear clinical picture of whether the disease is progressive and whether the 12-month test is met.
Relevant information may include:
metastatic or secondary cancer
locally advanced or inoperable disease
progression despite treatment
a poor or limited response to treatment
palliative treatment
significant deterioration or frailty
treatment focused primarily on symptom control
no further disease-modifying treatment being available.
No single phrase is essential, and a person may still qualify while continuing treatment. The key question is whether the clinician considers that the Special Rules test is met.
Why are people missing out?
When the Special Rules work well, they can be one of the most effective parts of the benefits system, providing financial support quickly and with less stress. However, the process is not always routinely discussed with people who may qualify.
Common barriers include:
patients and families not knowing that the Special Rules exist
clinicians believing that an SR1 should only be completed when death is imminent
difficulty discussing prognosis
financial concerns not being discussed as part of someone’s care
uncertainty over whether a GP, consultant or specialist nurse should complete the form
delays obtaining medical evidence
an SR1 being submitted without the relevant benefit claim.
The language used can also be difficult. Some people may know that their cancer is incurable or treatable but not curable, without describing themselves as terminally ill. Others may never have discussed a specific prognosis.
The 12-month test is not an expiry date or an exact prediction of how long someone will live. An award does not simply stop if the person lives beyond 12 months, and living longer than expected does not mean that the claim was incorrect.
Practical tips for avoiding delays
If you believe the Special Rules may apply:
Ask a healthcare professional who understands the person’s condition whether they can complete an SR1.
Start the relevant benefit claim promptly and make clear that it is being made under the Special Rules for End of Life.
Do not assume that the SR1 automatically starts the benefit claim.
Ask when and where the SR1 was sent and keep a note of the date.
Do not wait unnecessarily for the SR1 before beginning the benefit claim. Tell the DWP that the medical evidence has been requested.
Explain mobility difficulties separately when claiming PIP, as the mobility component is not awarded automatically.
Seek a full benefit check, as an award may also affect other benefits, additions, Council Tax support or help available to a carer.
Contact the relevant benefit office if there is an unexplained delay.
Financial support should be part of the conversation
The finding that around 120,000 people may die each year without claiming support demonstrates that this is not simply a matter of individual awareness.
Healthcare professionals need clear information and confidence to use the SR1 process. Conversations about financial difficulty and benefit entitlement should also form part of good, holistic care for people living with advanced cancer and other life-limiting illnesses.
These conversations must be handled sensitively and at the person’s pace. Asking about the Special Rules is not about giving up hope. It is about protecting someone’s financial dignity and ensuring they receive the support available to them when it may matter most.
Tenovus Cancer Care is a Wales-based charity giving voice, support and connection to people affected by cancer across Wales. We’re here for people living with cancer, their families and loved ones, providing expert advice, emotional support, and practical help when it’s needed most.
Our services are designed around the realities of cancer and the challenges it can bring. We help people access support as close to home as possible, from specialist cancer information and advice to financial support, counselling, and practical guidance. Our experienced cancer nurses provide trusted information, reassurance and a listening ear, while our Benefits Advice service helps people navigate the financial pressures of cancer and access the support they’re entitled to. Our counselling services offer a safe space to talk about the emotional impact of cancer.
We know that community and connection can make a real difference too. Through our community-based Sing with Us choirs, people affected by cancer can come together, build confidence, make friends and enjoy the benefits of singing in a welcoming environment. Around 900 people regularly attend our choirs, helping to reduce isolation and create a sense of belonging.
Alongside our frontline services, we make sure the voices and experiences of people affected by cancer are heard. Our policy and influencing work uses community insight to highlight inequalities, campaign for better cancer care and influence decision-makers across Wales. Through the All-Wales Cancer Community, we bring people and organisations together to help shape the future of cancer services, policy and research.
We work closely with partners, healthcare professionals, the NHS and governments to improve cancer experiences and outcomes across Wales. We believe people affected by cancer should be at the heart of decisions about their care and the future of cancer services.
Our work is made possible by our staff, volunteers, supporters, fundraisers, retail teams and partners. Together, we help people affected by cancer access the advice, support and connection they need.
Whether someone needs information, financial advice, emotional support, guidance through cancer services or simply a place to connect with others, Tenovus Cancer Care is here. Through our services, communities, and influencing work, we’re helping create a Wales where everyone affected by cancer can access the support they need, feel heard and never have to face cancer alone.
For most of us, losing access to an email account, changing a mobile phone number or forgetting a password is an inconvenience. We reset it, update our details and move on.
But imagine that account is the gateway to proving your right to live in the UK. Or to start a new job. Rent a home. Travel. Or simply demonstrate that you have the immigration status you know you have.
That is the reality facing a growing number of people as the UK’s immigration system becomes digital.
An eVisa is a digital record of a person’s immigration status and the conditions attached to it, such as whether they have permission to work or study in the UK. It has largely replaced physical immigration documents such as Biometric Residence Permits (BRPs) and Biometric Residence Cards (BRCs), as well as many passport stamps and visa stickers.
Instead of producing a physical document, people access their immigration status online through a UK Visas and Immigration (UKVI) account. They can then use online services to prove their status to employers, landlords and other organisations.
The government’s reasoning for the change is understandable. A digital immigration record cannot be physically lost, stolen or tampered with in the same way as a card or document. Information can be kept up to date and immigration status can be checked securely online. It also forms part of the wider ambition to create a modern, digital UK border and immigration system.
And this is not a small change affecting a handful of people. More than 10 million visa holders now use an eVisa to prove their status, including around six million people with status under the EU Settlement Scheme.
For millions of people, digital immigration status isn’t something coming in the future. It is already part of everyday life.
When digital doesn’t necessarily mean accessible
For someone who has a smartphone, a stable email address, their identity documents to hand and confidence using online services, accessing an eVisa may be relatively straightforward.
But frontline services don’t only work with people whose lives are that straightforward.
Think about someone who has recently left prison and no longer has the mobile phone or email account they previously used. A refugee with limited English trying to navigate an unfamiliar government system. Someone experiencing homelessness with intermittent access to a phone, email or Wi-Fi. Or an older migrant who has lived legally in the UK for decades and has always relied on a physical document to demonstrate their status.
There are also much more everyday situations. Someone renews their passport and doesn’t realise they need to update their UKVI account. They change their phone number. They forget which email address they originally used. Someone else helped them create the account and they don’t know the login details.
None of these circumstances are particularly unusual.
But when your immigration status exists digitally, they can suddenly become significant.
A digital problem can quickly become a real-world problem
The consequences can extend far beyond frustration with a website.
People may need to access their eVisa to demonstrate their immigration status or generate a share code when starting a new job or renting a home. Keeping passport and travel document information linked to a UKVI account up to date can also be particularly important when travelling.
That means something as simple as losing access to an old email account can potentially become a barrier to employment, housing or travel.
For somebody who is already experiencing unemployment, financial hardship, insecure housing or other difficulties, another barrier is the last thing they need.
And there is another side to this transition which receives less attention: the people being asked to help.
The growing challenge for frontline staff
Employment advisers, housing officers, refugee and migrant support workers, resettlement teams, prison-leaver services, community organisations and advice workers are increasingly encountering people who need help navigating their digital immigration status.
The questions can sound deceptively simple.
“I can’t get into my UKVI account. What do I do?”
“I’ve changed my phone number.”
“My employer wants a share code.”
“I’ve got a new passport. Do I need to do anything?”
“I have Settled Status, but how do I prove it?”
“I’ve lost my BRP. Does that mean I’ve lost my status?”
For a frontline worker who isn’t an immigration specialist, knowing how to respond can understandably feel daunting.
There is an important distinction here. Helping somebody navigate a UKVI account, update their details or understand how to generate a share code is very different from advising somebody about which immigration status they should have or what immigration application they should make.
Frontline professionals need confidence on both sides of that boundary: understanding what practical help they can provide but also recognising when a person’s situation requires specialist immigration advice.
Sometimes the right questions make all the difference
One of the most important things we’ve found when developing our training is that good eVisa support doesn’t always start with a computer. It starts with a conversation.
Does the person already have a UKVI account? Can they access the email address connected to it? Do they still have the same mobile number? Do they have their passport, travel document or old BRP? Have they recently renewed their passport? Has someone else previously helped them manage their account?
And, crucially, what are they actually trying to do?
Do they need to start a job? Prove their right to rent? Travel? Update a document? Or simply access and understand their immigration status?
Asking those questions first can turn what initially appears to be an overwhelming problem into something much more manageable.
It also highlights why digital exclusion needs to be part of the conversation around eVisas. Not everyone will be able to navigate these processes independently. People with limited English, limited digital skills, disabilities, insecure access to technology or particularly complex lives may need additional support.
The people who find digital systems hardest to navigate can often be the very people who have the most to lose when something goes wrong.
Building confidence on the frontline
At Society Matters, we have developed our new half-day CPD-accredited course Supporting People with eVisas: A Practical Guide to Digital Immigration Status in response to these challenges.
Rather than trying to turn frontline workers into immigration advisers, the course is about giving them the practical knowledge and confidence to recognise and resolve the everyday eVisa issues they are increasingly encountering.
Delegates explore:
what eVisas are and why the system has changed
the different immigration statuses that use eVisas
UKVI accounts and how they differ from an eVisa
creating and accessing a UKVI account
recovering access when things go wrong
updating passports, travel documents and contact details
using the View and Prove service
generating share codes for work, rent and other purposes
troubleshooting common problems
supporting people experiencing digital exclusion
recognising when specialist immigration advice is required
The training uses practical demonstrations, real-life scenarios, quizzes and troubleshooting activities, alongside a delegate resource pack containing links to official guidance and support.
Because ultimately, digital systems should remove barriers rather than create new ones.
And when they don’t, having someone on the frontline who understands the system, knows the right questions to ask and can calmly help someone find their way through it can make all the difference.
Employers may not recognise the power they have to support their workforce to improve their financial wellbeing beyond the obvious pay and benefits package, so Society Matters is on a mission to change that.
We all know and understand the phrase ‘time is money’ and as someone responsible for leading or managing people you’ve no doubt used it more than once! But how about we switch that phrase on its head – do you think you could provide your staff the time, impetus and resources during the working day to improve their personal financial situation, with minimal cost or disruption to you?
What we already know is that when staff are worried about making ends meet (and let’s face it there are few people who aren’t at the moment) that can have a detrimental effect on every aspect of their lives, including their work. Distraction and anxiety can lead to reduced motivation and productivity, and having to find the time to deal with financial affairs can lead to absenteeism, so ditto the point about productivity. To be fair if you’ve ever tried to call a helpline or a government department such as DWP you’ll know that the call queue can be an hour or more, so trying to fit that into your lunchbreak (because much of the available support isn’t available outside of work hours) is just not feasible.
There’s another good reason to give your workforce some time to improve their financial wellbeing during the working day. It will provide them a focal point to take action and, depending on how you handle it, some accountability for making changes that will make a difference. When it comes to getting help with financial challenges in particular, the Money Advice and Pensions Service (MaPS) through their UK Strategy for Financial Wellbeing 2010-20 shine a light on the fact that poor financial wellbeing is affecting tens of millions of people, and that employers are a community that can really make a difference with a key potential role to play in reversing the trend for people not to seek advice when they need it. MaPS evidence suggests that nearly two thirds of people have not sought financial advice, guidance or talked to someone about their finances, with those on the lowest incomes being much less likely to discuss financial matters than those on higher incomes.
Here’s why the gift of time in the workplace can make a difference.
When it comes to managing our personal financial affairs, let’s face it, we all have a few skeletons in the closet – those things you just haven’t got round to doing although they won’t really take long to do, but once they’re eventually done you wonder why you didn’t do it sooner. With sometimes just a few hours’ effort (often less …) not only did it clear your conscience, but it also made a positive impact on your life in some way shape or form, whether that’s been a boost to your bank balance or just managing to get your partner off your back!
So, what are the skeletons that are in your closet right now? Just stop for 2 minutes and make a mental list – they may not be things that are necessarily keeping you awake at night, but they are definitely in the ‘wish it was sorted’ category. Maybe it’s that subscription you know you should cancel but keeps coming round every month when you’re just too late to do something about it. Or switching your bank or insurance because you know you’ll get a better deal elsewhere. Maybe selling those old clothes or books that are cluttering your home to raise money for charity – or to improve your own bank balance this month. If you haven’t thought of anything give yourself a pat on the back, and then ask someone you know the same question – they’re sure to come up with something!
Then ask (yourself) … so what’s stopping you? The answer is probably going to be in the realms of “I just haven’t found the time”. Fair enough, when you’re outside of work running your busy life it’s so easy to let these things slip, but really it’s probably more than that. It can also be about finding the brain space and, probably, having a lack of accountability for getting it done. Sometimes it can simply be about knowing how to do it, or even how to get started.
If you then apply this notion to your employees, it might be reasonable to assume that at least some of them could already have a list of things they really need to do that would improve their personal financial situation but they too haven’t had the time, brain space, accountability or know-how. This isn’t going to be the answer in isolation, but every pound helps so I’d encourage you to consider supporting staff to tackle money issues during their work time as part of your financial wellbeing strategy (more on how below).
So, what can you do to help?
There’s a lot (talk to Society Matters about the Employer Support Programme they’re running that’s funded by the North of Tyne Combined Authority), but one very simple action you could take is to launch a ‘Time is Money 2023 Campaign’ amongst your staff, in the knowledge that giving your staff the gift of time to focus on matters associated with their financial wellbeing during the working day could be good for their pocket, as well as improving their productivity, performance and attendance – so it’s definitely a win win. How?
10 steps plan for your Time is Money 2023 campaign
Applying the principle of keeping it simple, here’s how you might approach your Time is Money campaign.
Come up with a list of actions that staff could take to improve their financial wellbeing. It really doesn’t matter what it is, as long as it has some kind of impact on their income or expenditure, so that might include
doing something they’ve been putting off (that mobile phone supplier switch they’ve been meaning to tackle);
accessing training (either online or in the workplace – talk to Society Matters for options);
using web resources for cost-cutting or budgeting;
making calls to DWP, Citizens Advice or a debt helpline;
uploading stuff to sell on ebay, facebook or Money Magpie;
taking a good look at the bank statement for subscriptions they’re no longer using – and doing something about it;
checking eligibility for social tariffs from utilities companies;
get access to the budgeting tools on the MaPs MoneyHelper
Identify some staff champions to lead the Time is Money campaign to give it a positive spin.
Ask staff to make a personal pledge to participate in the campaign, setting out actions that they will take in the time provided during work time (this can be as generous as you like, but even a minimal time investment of only one hour a week over four weeks will start to make a difference).
Encourage participation in the campaign with an incentive such as shopping vouchers (try and spread across as many employees as possible and keep them under the limit that would class as a taxable benefit).
Provide some resources, information, training, staff champions to access any help needed with whatever they’re planning to tackle. Talk to Society Matters cic for some ideas about what will make a difference if you aren’t sure where to start.
Monitor both participation and impact – look for success stories – maybe they could be the focal point of your voucher incentive – who saved the most, made the most, tackled the biggest challenge, shared their story with the most people.
Share the success stories to build the momentum.
Ask the question – would you have done this anyway or has this campaign given you the time, impetus and resources to do something you couldn’t/wouldn’t have done otherwise?
Pat yourself on the back for using the power and influence at your disposal as an employer by giving the gift of time to improve workforce financial wellbeing.
10. Repeat.
Good luck!
Jayne Graham MBE FIEP
This article is brought to you by Society Matters cic with the support of the North of Tyne Combined Authority as part of the implementation of Pillar 3 of the Child Poverty Prevention Programme which aims to alleviate in-work poverty for employers across the North of Tyne area.
We’re reading so many reports of people dreading Christmas this year, wondering how on earth, with costs continuing to soar, they can stretch already tight budgets to pay for festive treats for the family.
So, as a responsible employer that cares about your staff, you’re no doubt thinking about what you can do to help out, and there are two tried and tested options that may be included in your usual go-to goodwill policies: the pre-Xmas bonus as a boost to December pay packets; and bringing forward the December pay date to give staff early access to cash to help with buying the turkey and trimmings.
Nothing wrong with that – other than of course the obvious implications of a ‘long month’ ahead until the next payday. But what about lower paid staff who are topping up their household income with welfare benefits – what are the implications for them?
How do you define ‘lower paid’ staff?
First, just to qualify, there’s no hard and fast rule about the salary level that constitutes ‘lower paid’, but as a rule of thumb, you might want to focus on staff earning up to 10% above Real Living Wage. For someone working 37 hours/week that’s around £23k pa, and almost £25k for 40 hours/week. So let’s make our benchmark for ‘lower paid’ under £25k.
What’s the earnings threshold to qualify for welfare benefits?
Equally, there’s no solid income line below which someone would qualify for welfare benefits – again it’s entirely dependent on their own individual situation – whether they have children, if they or someone in their care is affected by a disability, how many bedrooms they have in their home, their overall household income, the list goes on. But to keep things simple, using around the same benchmark – under £25k – should give you a reasonable starting point. There are reportedly 6 in 10 families experiencing the benefits system who have at least one member of their household in work.
So if your workforce includes staff who are earning under £25k, there’s a high likelihood that some of them at least will be receiving welfare benefits, and let’s assume that in most cases that includes Universal Credit. In that case, unfortunately these go-to employer gestures of goodwill – the pre-xmas bonus and the early salary payment – although well meaning, can lead to members of your staff that ironically may need the cash boost the most being out of pocket as a result, with the financial impact being felt at the end of January (and therefore the whole of February), not giving them the start to the new year they’d hoped.
Here’s why.
How early pay days affect staff claiming Universal Credit
Ok, first a rider statement. Universal Credit (UC), the way it’s calculated and paid, is complex. If you would like to understand more about it Society Matters has a great 2-hour workshop – In-work Benefits – A Guide for Employers – which will help a lot. You may also find this information on UC and work from DWP useful (although it’s probably best to top up your coffee first …).
So through this article, the plan isn’t to attempt to fully unpack the whys and wherefores but to explain enough for you to understand the impact and, hopefully, to help you to do something about it.
UC claimants receive their payment on the same day each month and that’s determined by the date they received their very first payment. The amount they earn in any month from paid employment will be taken into account when DWP calculate the UC payment they’re entitled to the following month. An early payday is likely to mean that the claimant – your employee – will have received essentially double the earnings in one assessment period, and that is likely to mean that their income exceeds the threshold under which they receive a top-up of their earnings through UC.
The implications of this can be that their UC top-up is significantly reduced or even that they don’t receive their UC top-up at all (and that may mean they don’t receive support for example to pay housing and childcare costs). Added to that, qualifying for UC can be a gateway to other benefits such as Carers Allowance and Tax Credits, so they may not receive these either, and to top it all, if their income is over a certain threshold this would be classed as ‘surplus earnings’ which equates to savings, which will also have an effect on their eligibility for benefits.
So what can you do about it?
The best advice we can give is for you to check with your employees whether they would like to receive the advance salary payment before you go ahead with it – as it’s unlikely you will know exactly who’s claiming welfare benefits, it’s best practice to ask everyone. If you’re able to run two payrolls to accommodate both preferences then that would be ideal.
Within any communication about a possible early pay date, you can also reference the need to budget carefully in January if they do receive the advance payment, whether they are on benefits or not, because early paydays make the distance between pay dates a long time for everyone. Specific reference in your communication to anyone claiming welfare benefits would also be a good idea, with an acknowledgment that you recognise that a change of pay date can have an impact on benefits claims – in that case, employees who hadn’t considered it beforehand will have the opportunity to look into it now so they can plan ahead for January.
If you’d like to know more about how UC calculations work for people who are employed there are some examples here (but be warned, this is not for the feint hearted!).
The pre-Xmas bonus trap for benefits claimants
The same basic principles we’ve outlined above for the early payday apply to the pre-Xmas bonus. UC entitlement for people in work is calculated based on an amount DWP has determined you are able to earn and still qualify for the benefit (the ‘Work Allowance’). Again, this is based on individual life circumstances. Anything your employee earns over their Work Allowance is subject to a 55p levy for each £1 earned until the total earnings are over the amount they would have received from UC alone.
So, let’s imagine that you pay a pre-Xmas bonus to every member of staff. Whilst higher earners are enjoying their unexpected treat, the employee claiming benefits will have the bonus taken into account when their UC is calculated in January, and if the bonus takes them over the total earnings limit for UC this is likely to stop their UC altogether that month – plus the other qualifying benefits as already explained. If the bonus is so significant that they will earn over their total earnings limit that’s great, other than this could take them into surplus earnings with the resulting impact already explained earlier. So really they have no option other than to decline the bonus (assuming you give them the option – although you may feel this isn’t quite the spirit of what you’re aiming to do it would be good practice to do so) or ensure your communications to staff includes a message to ensure staff set aside the money to make up the difference in their reduced benefit payment in January if they are claiming UC. But when cash is so tight it takes a lot to do that, particularly at Christmas.
So what’s the solution?
It’s been suggested that giving vouchers instead of money in pay packets could avoid this problem for people on benefits, however please proceed with caution to avoid flouting the tax rules associated with taxable benefits. If the voucher is deemed to be a substitute for income it’s taxable and therefore needs to be declared as earnings, and therefore it counts towards income for the purpose of a UC calculation too. However, HMRC does allow ‘trival benefits’ to be paid tax-free as long as the value is below £50 – see details here. As always please check with your tax adviser before going ahead to make sure your plans qualify, because making undeclared payments will have serious consequences for all parties involved.
You may, of course, also be considering whether to give lower paid employees a more stable uplift in earnings, avoiding bonuses altogether – good idea.
Jayne Graham MBE FIEP
This article is brought to you by Society Matters cic with the support of the North of Tyne Combined Authority as part of the implementation of Pillar 3 of the Child Poverty Prevention Programme which aims to alleviate in-work poverty for employers across the North of Tyne area.
Today we’re hearing the terms ‘cost of living’ and ‘cost of living crisis’ pretty much every day, in media, online and during conversations between colleagues, friends and family. But what about the ‘cost of working’?
You’d be forgiven for not having given this any thought, as obviously you would naturally associate work with income, rather than expenditure. But if you employ staff it would be worth stepping back to have a think about how much it might cost someone to work at your place, and what you can do about it.
Here are 5 ideas that might help.
1. Reduce travel to work costs
The most obvious ‘cost of work’ has to be travel. Whether that’s by car or public transport, there’s a cost attached. Some employers are helping employees to reduce this cost through initiatives such as:
car share schemes which can be supported through sites such as LiftShare for Work to enable colleagues to travel together to save travel costs
community car hire schemes such as Co Wheels that enable your staff to collect a car locally and use it for anything from half an hour
Travel passes, pre-paid tickets and season tickets with local transport companies can give employees access to reduced travel on public transport without the need to pay up front, such as Arriva’s Business Travel Scheme.
Cycle to Work schemes which make buying a bike more accessible and cheaper through salary sacrifice and tax benefits such as the Bike to Work Scheme.
2. Provide a uniform
If staff already wear uniforms at your workplace and have to pay for them, it would be worth making sure they know that this is a tax deductable cost. More information on .gov website here.
If you don’t currently have a uniform could you introduce one, maybe even just a tshirt and/or sweatshirt that’s standard, to reduce the costs associated with dressing for work?
3. Supplement the cost of home working
Many organisations have moved to hybrid models of working over the past couple of years, with an increasing number of employees working at least 3 days a week at home. That may not necessarily be saving you costs at the workplace, unless you have chosen to reduce your space as a result. But whether you’re saving or not, there is a real cost of working at home for your staff, and recent reports have suggested that this isn’t necessarily offset by the reduced cost of travel.
The most obvious cost is energy – think electricity consumption (monitors, laptops, phone chargers, kettle and, as Winter bites heating the home to make it comfortable for work). Are employees, particularly those on Smart Meters, advised on reducing energy consumption during the working day, as well as being supported to compare the cost of being at home and at work so they can make an informed decision as to which will work better for their pocket?
Over and above that there are other costs to think about, such as broadband and phone. Are you checking that your employees have the best deals available to enable the level of supply they need to work effectively? Have they upscaled their broadband speed at their own cost, and is that a cost you could help out with?
4. Action some cost-cutting around workplace culture
Participation in workplace culture can be very costly, and has the potential to encourage people to spend what they don’t have for fear of being seen to be a stick-in-the-mud, when actually that ‘quick pint after work’ means they will have to walk home today rather than get the bus.
Here are a few of the red flags you maybe need to think about in your workplace:
Staff socials – is there a way you could supplement the cost (even on a discrete basis for staff who can’t afford to attend but don’t want to be excluded)?
‘Whip rounds’ for birthdays and leaving gifts – the pandemic did put pay to the person standing at the desk with an envelope for many workplaces, but does this still exist in your organisation? Could you maybe shift collections to online so people are able to opt in, rather than overtly opt out?
Sponsorships – when there’s an active workforce doing good, asking colleagues for sponsorship is an obvious thing to do when you’re fundraising, but this can be a real challenge for people. Ditto the above point, and do you have a policy to control this to avoid it getting out of hand?
Sweepstakes and gambling – do you have a policy about informal syndicates and participation? If not that might be something to think about.
Lunch clubs and staff buffets – this type of initiative can be great for team building but can also put pressure on people’s pockets, so are you able to supplement the cost and ensure that people are still invited to eat but it’s optional to contribute?
5. Check staff know their eligibility for free childcare
An increasing number of parents are seriously thinking about whether they can continue to afford to work with the rapidly increasing cost of childcare. Are your employees clear about what childcare support entitlements they have for children under 18, and are you helping them to take full advantage of them? Obviously there are hoops to jump through to check eligibility, but it’s worth checking because many benefits are underclaimed simply because people don’t know they are entitled. Here are some ideas and links:
Jayne Graham, Associate Director for Social Action
This article is brought to you by Society Matters cic with the support of the North of Tyne Combined Authority as part of the implementation of Pillar 3 of the Child Poverty Prevention Programme which aims to alleviate in-work poverty for employers across the North of Tyne area.
