My initial thoughts, on this decision, are that this is a very substantial threat to the entire Universal Credit system.

If the decision stands, because the DWP don’t appeal, appeal and lose or accept the decision and don’t table amendments to reintroduce the current way of applying earnings, then the consequences are huge.

Logically, it seems inescapable that they would, probably, have to use only earnings received in respect of that assessment period;

  “(56) … there may need to be an adjustment where it is clear that the actual amounts received in an assessment period do not, in fact, reflect the earned income payable in respect of that period.”

That assessment period will comprise of a variable number of days from month to month during the year, as each assessment period, with variations for those based around dates at months’ ends, start and finish on fixed dates in each month.  Individual’s assessment periods are based on their dates of claim for Universal Credit and those will very often differ for people on identical pay cycles.  Pay in advance, or arrears, bonuses and holiday pay start looking very complicated to attribute to assessment periods.

The whole Real Time Information system operated by HMRC, which passes earnings data across to the DWP, and which is fundamental to Universal Credit, doesn’t handle that kind of information well, if at all.

Can they run Universal Credit manually?  No.