Universal Credit is a payment intended to help people out of work, or on a low income with daily living costs and will replace six legacy benefits, including Child Tax Credit, Housing Benefit, Income Support, income-based Jobseeker's Allowance (JSA), income-related Employment and Support Allowance (ESA), and Working Tax Credit for some 2.6 million people across the UK by the end of 2024.
The latest figures from the Department for Work and Pensions (DWP) show that there are currently 5.6 million people claiming Universal Credit, however, with the jobs market booming and people eager to bring in more money to help cope with the rising cost of living, many are expected to end their claim over the coming months.
And it’s crucial this is done as soon as possible, or claimants may find themselves with a benefit overpayment that needs to be repaid.
The latest Fraud and Error report from the DWP reveals that the Universal Credit overpayment rate is now at 14.7% - some £5.9 billion - and is officially the highest reported Universal Credit overpayment rate to date.
Below is everything you need to know about ending your Universal Credit claim and avoiding any unwelcome repayments when you start your new job.
How to cancel Universal Credit
Changes in circumstances, such as finding a job, affect how much Universal Credit you receive - remember, depending on how much you earn, you may still be eligible for the benefit following a change to the taper rate rule in November 2021.
If your situation changes and you need to cancel your Universal Credit, the easiest way to contact JobCentre Plus is through your online journal, or by phone.
Independent advice website PhoneThem also says claimants can simply sign in to their online account to cancel Universal Credit.
It states: "If your circumstances change and you need to cancel your Universal Credit benefit, then you can do this online or on the phone.
"Circumstances that might lead to this include finding a job or moving in with a partner. It might be if you have had a child or care for a child, moved to a new address with different housing costs or changed your banking information. You also need to notify any health conditions that affect your ability to work.
"You can also use the website to report changes through the ‘change in circumstances’ section. If these changes mean you are no longer eligible for the benefit, then there is an option to cancel the claim entirely and this means you don’t need to worry about penalties."
Another option is to contact Universal Credit advisors. Phone the number on any paperwork you have received or call the free helpline on 0800 328 5644 (Monday to Friday, 8am to 6pm).
For more information about cancelling Universal Credit or withdrawing a claim, visit the GOV.UK website, here.
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