THE DWP has lost an appeal over Universal Credit after four mothers challenged how payments were calculated.

The four working single mothers won an earlier case over the DWP who said they had two wage payments in one monthly assessment period when they were paid early if payday fell on a bank holiday or a weekend.

When they were paid a day or two early it meant they were treated as having earned two monthly salaries in one  Universal Credit assessment period and nothing in the next assessment period.

It meant they got fluctuating amounts of Universal Credit and lost out on a working allowance they were entitled to, causing them hardship.

It was costing the women several hundred pounds each on the months when it happened.

The women were unable to change their pay dates or assessment period dates and the DWP was unprepared to adjust the system to prevent the problem from occurring because it considered it was entirely lawful.

A judge at the High Court ruled in the women’s favour in January last year but the DWP challenged the decision.

Now at the Court of Appeal a Judge has rejected the DWP appeal and the original ruling stands.

The Child Poverty Action Group represented three of the women.

It said they had accrued rent arrears, defaulted on council tax, incurred bank overdraft charges, borrowed money and even become reliant on food banks to make ends meet until thy next got paid.

Lady Justice Rose said that she could not accept the DWP's argument that the UC computer programme could not be modified and ruled that it is irrational for the Secretary of State not to change the system to solve the problem and make an exception for claimants who lose UC income for no reason other than the coincidence between the date of their salary payment and the date they first claimed UC

The judgment requires the DWP to make adjustments to the way that the UC system assesses earnings when claimants' regular monthly pay dates fall close to the end of their assessment period, so as to avoid situations where they have two paydays in one assessment period.

Many more people across the country are believed to be affected by the problem.

Carla Clarke, solicitor for CPAG said:"Justice has been done and common sense has prevailed. The court has recognised that it's not enough to say 'the losses weren't real and the computer system can't be changed' when the losses were very real to the mothers in this case who are working hard to try and give their children a secure and stable income. No-one should be left unable to budget and in a precarious financial situation despite being in stable, regular paying employment simply because the DWP failed to design the UC system to take account of an entirely foreseeable situation, namely that many employers do not pay on a non-banking day.”

Social Justice spokesperson Mhoraig Green said: “We welcome this decision. It’s an issue which we know affects significant numbers of people in Scotland who were being disadvantaged by this interpretation of the law.

“We commend CPAG for their success in clarifying the situation and we hope this will help many households in Scotland who are struggling to make ends meet.”