Rochdale Borough Council will change how it pays backdated wages after staff on Universal Credit found lump-sum payments were cutting into their benefits, according to UNISON.
From 2027, employees will be able to choose between a single lump sum or staggered payments spread across Universal Credit assessment periods.
Previously, backpay was issued only as a lump sum, which counted as extra income and could reduce or stop the following month's Universal Credit payment, sometimes also affecting student loan repayments.
The change follows a petition by school support workers backed by more than 900 signatures.
A Rochdale teaching assistant said she had lost over £350 from a monthly Universal Credit payment because of the old system.
UNISON North West regional organiser Jane Warburton called it a win secured by staff standing together, adding that Cllr Sameena Zaheer had supported the campaign.
‘This is an excellent win for staff who seized the initiative, stood together and secured a positive change for themselves and their colleagues,’ she said.
