The Department for Work and Pensions (DWP) has confirmed it will change the rules for everyone claiming Universal Credit as soon as April in a drive to cut millions from the benefits bill.
There are currently 7.5 million people claiming Universal Credit in the UK, making it the most widely received benefit. Under current rules, any claimant who has a change in their circumstances – like finding a job, a change in income, moving house – must report this to the DWP immediately.
This is because any change could affect their benefit entitlement, meaning they may start being paid too little or too much. If an unreported change results in an overpayment, the claimant will be liable to pay this back, plus possibly a £50 fee.
But from April, this system will be changing. While all of these rules will still apply, the DWP will also begin prompting Universal Credit claimants to confirm whether or not they have had a change in circumstances.
Though first announced in Rachel Reeves’s October Budget, a timeframe for the plans has now been confirmed by Sir Stephen Timms in parliament: “As announced at Autumn Budget 2024, the department will prompt Universal Credit claimants to confirm whether they have had a change in circumstances that might affect their claim.
The DWP minister added: “Any changes in circumstances declared will be processed and verified in the usual way. A roll out of this initiative will commence in April and testing will help determine frequency.”
This means that how often claimants will be asked to report any changes in their circumstances will remain subject to a trial period.
Following an investment of £110 million this year to support the extra work, the Treasury says the measure is expected to save £250 million in 2029-2030.
Universal Credit payments will also be increasing in April with the annual uprating to match inflation. Following the chancellor’s Budget announcement, it was confirmed that all benefits will be uprated by 1.7 per cent, matching the September 2024 inflation figure.
While this is not unusual, campaigners had called for Labour to consider a slightly higher increase. Inflation had been higher in previous months, beginning at 4 per cent in January and rising above 2 per cent again from October.
Halide Kalfaoglu, benefits expert at Turn2us, says: "If you're claiming Universal Credit, it's important to stay on top of any changes in your circumstances that might affect your claim, for example if you move home or have a child. Keep records of any updates, respond quickly to DWP requests, and seek advice if you're unsure what a change means for your payments. Getting the right support can help you avoid issues later on."
For the latest information about benefits and the cost of living, visit The Independent’s regularly updated guide.
