Universal Credit Recipients Face Penalties or Court for Failing to Report These 16 Changes

According to the most recent Department for Work and Pensions (DWP) figures, 6.4 million people were claiming Universal Credit as of the end of January 2024.

This figure comprises 2.4 million employed people, or 38% of all those receiving income-related benefits.

The benefit is typically paid monthly, but it might be provided weekly for some people residing in Scotland. However, many claimants may be unaware that certain changes in circumstances must be notified to the DWP or risk losing their right or benefits, which may result in a penalty fine or even a court appearance.

Changes that must be reported involve getting a new phone number or email address, migrating to a different bank account, changing addresses, and your rent going up or down. The Department for Work and Pensions (DWP) warns: "You could be taken to court or have to pay a penalty if you give wrong information or do not report a change in your circumstances."

The DWP announced earlier this week that it now has "3,100 full-time equivalent agents reviewing Universal Credit claims".

The DWP will conduct a fraud and error exercise for 2024 by measuring a sample of claims from five specified benefits and the State Pension throughout the fiscal year 2024/25.

DWP fraud and error review during this fiscal year

In 2024/25, the DWP will assess fraud and mistake in sample claims for the following benefits:

Universal Credit.
Housing Benefit (for State Pensioners).
Pension Credit.
State Pension (contributory benefit).
Personal Independence Payment (PIP).
Disability Living Allowance.

In an update on GOV.UK, the DWP also said that the State Pension measurement will involve claims made through the 'Get Your State Pension online' service in the fiscal year ending 2024.

This will also mark the first measurement of DLA since the fiscal year ending 2005, bringing its response to a consultation that ran in the summer of 2018.

The DWP plans to release the fraud and error report for the fiscal year ending 2024 in May of the same year (2025).

Change of Circumstances You're Required to Report to DWP

According to DWP instructions, you must report changes in your circumstances to ensure that you continue to get the correct amount each month. It also states that you must disclose changes "as soon as they occur" because any delay "may result in you receiving too much money and having to make a repayment."

The DWP cautions that "Changes in your circumstances can affect how much you're paid for your whole assessment period - not just from the date you report them."

Changes may include:

Getting a job.
Finishing a job.
Having a baby
Moving in with your partner.
Starting to care for a child.
Starting to care for disabled person.
Changing your phone number.
Changing your email address.
Moving to a new address.
Changing your bank details.
Your rent going up or down.
Changes to your health condition.
Becoming too ill to work or meet your work coach.
Changes to your earnings - only if you’re self-employed.
Changes to your savings, investments and how much money you have.
Changes to your immigration status, if you’re not a British citizen.

How to Declare a Change

You can report a change of circumstances by logging into your Universal Credit account on GOV.UK.

Universal Credit payout rates for 2024/25

If you're contemplating to make a claim for Universal Credit, here's a quick overview of the current payment rates.

Universal Credit (monthly rate)

Single claimants

Under 25: £311.68.
For those aged 25 or over: £393.45.

Joint claimants

Joint claimants, both under 25: £489.23.
Joint claims, one or both 25 or older: £617.60.

Child amounts

First kid (born before April 6, 2017): £333.33.
First child (born on or after April 6, 2017) / second child and subsequent child (where an exception or transitory provision applies): £287.92.

Disabled Child Additions