Universal Credit is designed to simplify the welfare system for both HMRC and DWP as well as reduce fraud and error.
With that said, Universal Credit payments differ to other benefits, like Child Tax Credits, for example. Based on the information submitted by the employer through RTI, Universal Credit payments can be adjusted on a regular basis each time the employee receives a payment. This information affects how much Universal Credit is paid. Claimants can clearly see they are better off when they work, or increase their take home pay, through the Universal Credit system. In time, most Universal Credit claimants who are employed will be covered by RTI.
Employers are required to submit information to HMRC each time a payment has been made to an employee. In the past, if there was a mistake on the payroll you could fix it by paying or not paying the extra amount, then adjusting the next payslip. If accurate information is not submitted at the right time then this could result in the employee not receiving their Universal Credit payment.
N.B Employees will be keeping a closer eye on their payslips to look for any errors and disputes about the accuracy of their payslip.