Universal Credit is a vital financial assistance program designed to support individuals who are on a low income or out of work. Recently, the Department for Work and Pensions (DWP) issued a warning to recipients, stating that some Universal Credit payments may need to be repaid. The alert, which was shared on Wednesday, underscores the need for claimants to stay vigilant in updating their circumstances.
According to the Manchester Evening News, failure to report changes could lead to overpayments that will eventually require repayment, potentially causing financial difficulties for those already struggling. The DWP’s message emphasizes the importance of keeping accounts accurate.
What Is Universal Credit and Who Is Eligible?
Universal Credit is a welfare payment designed to support individuals on a low income or who are out of work. It has replaced multiple previous benefits, including:
- Housing Benefit (for housing costs),
- Income-related Employment and Support Allowance (ESA) (for those with limited capability for work),
- Income-based Jobseeker’s Allowance (JSA) (for unemployed claimants),
- Income Support (for individuals unable to work for various reasons).
These changes aim to simplify the welfare system and make it more flexible. The benefit is available to those aged 18 or over, with exceptions for 16-17 year olds in certain circumstances. Additionally, to be eligible, claimants must have less than £16,000 in savings (as of the latest guidelines). Payments are typically made monthly, though the exact amount depends on factors like income, household size, and other circumstances.
DWP’s New Alert: Report Changes or Risk Overpayments
In a recent alert posted on Twitter (formerly known as X), the DWP has emphasized the importance of updating any changes to personal circumstances, or else claimants could face overpayments. The message states:
If you’ve moved in with a partner or your living arrangements have changed, remember to update your circumstances using your Universal Credit account. Not reporting changes could lead to overpayments that you may have to repay.
A voiceover in a video accompanying the tweet further stressed the importance of keeping Universal Credit accounts updated, warning that failing to do so could result in building up overpayments, which must eventually be repaid.
The DWP continues,
Remember to update your circumstances using your online Universal Credit account. If you don’t, you could build up overpayments, which you’ll have to repay. Keeping your Universal Credit account up to date ensures you receive the support that you are entitled to.
Common Life Changes That Must Be Reported
The DWP’s guidelines are clear about the types of changes that need to be reported. If any of the following events occur, claimants must notify the department:
- Changes in Household Composition: If anyone moves in or out of your home, including a partner or other individuals, you must report it.
- Health or Caring Responsibilities: If there are changes in your health condition or caring responsibilities, such as caring for a relative, these must be updated.
- Children and Education: If your child stops or resumes education or training (especially if they are aged 16-19), you must inform the DWP.
- Change of Address or Travel Plans: If you move to a new address or plan to be abroad for any length of time, the department must be informed.
Neglecting to update the DWP about these changes could lead to receiving too much support, which will need to be repaid later.
