DWP to trial Universal Credit rule change from April

The Department for Work and Pensions (DWP) is confirming a major Universal Credit change that will affect millions across the UK. In the Autumn Budget, Chancellor Rachel Reeves announced a drive to reduce the number of people claiming the benefit.

It is currently the most received benefit in the UK with 7.5 million claimants across the country. The current rules state that people must contact the DWP if they have had a change in their economic circumstances.

This can include if they have lost their job, gained a promotion, or moved to a higher-paying role. The government has these rules to prevent claimants from being paid too little or too much. Any changes must be reported to the DWP immediately, as claimants can be made to give back overpayments along with a potential £50 surcharge.

From April, the current system will be changing. Labour backbencher Nadia Whittome contacted the government department last week for clarification on whether claimants will have to confirm their circumstances every six months.

In response, government minister Stephen Timms would not give an exact timeframe but said a trial would be in place to prompt claimants to confirm if their circumstances have changed.

His full response reads: "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.

"Any changes in circumstances declared will be processed and verified in the usual way. A rollout of this initiative will commence in April, and testing will help determine frequency."

The treasury believes this move will help save £250 million a year by 2029. The change to DWP rules will coincide with an increase in payments to align with annual inflation figures, reports The Independent.

Reeves announced last year this amount would be 1.7 per cent. Campaigners criticised this move due to inflation actually hitting four per cent earlier last year, meaning benefits won't actually be increased enough.

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