The Department for Work and Pensions (DWP) has confirmed upcoming rule changes for Universal Credit claimants, set to take effect in April 2025. The new system is aimed at reducing overpayments and ensuring benefit entitlements remain accurate.
With 7.5 million people currently receiving Universal Credit in the UK, these changes could impact millions of claimants.
Here’s everything you need to know about the upcoming changes and how they might affect your payments.
What’s Changing?
Under the current rules, claimants must immediately report any changes in their circumstances, such as:
- Getting a new job or a change in income
- Moving to a new home
- Having a child
- Changes in household composition (e.g., a partner moving in or out)
Failing to report changes can lead to incorrect payments. If a claimant receives too much money, they are required to repay the overpayment, sometimes with an additional £50 penalty fee.
Starting in April 2025, the DWP will introduce automated prompts asking claimants to confirm whether their circumstances have changed. This new system was first announced in Rachel Reeves’s October Budget, but the rollout schedule has now been confirmed by Sir Stephen Timms in Parliament.
New System
- Regular prompts: Claimants will be asked at scheduled intervals to confirm if their circumstances have changed.
- Verification process: Any declared changes will be processed and verified as usual by the DWP.
- Testing phase: The frequency of these prompts will be tested before becoming permanent.
The government hopes that this new system will reduce errors and save £250 million by 2029-2030. The Treasury has invested £110 million this year to support the rollout.
Payments
Alongside these changes, Universal Credit payments will rise by 1.7% in April to match inflation. This annual increase follows the September 2024 inflation rate.
While this increase follows standard policy, some campaigners argue it should be higher, as inflation was previously above 4% in early 2024.
What Should Claimants Do?
Halide Kalfaoglu, a benefits expert at Turn2us, advises claimants to:
- Stay updated on any changes in DWP policy
- Keep records of life changes that may impact their claim
- Respond quickly to DWP requests
- Seek advice if unsure about how changes may affect payments
For the latest updates on benefits and the cost of living, visit The Independent’s regularly updated guide.
FAQs
When do the new Universal Credit rules take effect?
The new reporting system starts rolling out in April 2025.
What happens if I don’t report changes?
You may have to repay overpayments and could face a £50 penalty.
How much is Universal Credit increasing by?
Payments will rise by 1.7% in April 2025 to match inflation.
How often will I be asked to confirm my details?
The DWP will test different frequencies before finalizing the system.
Where can I get help with Universal Credit changes?
Check The Independent’s guide or seek advice from benefit experts.
