The Department for Work and Pensions (DWP) has issued a reminder to those on Universal Credit that they may need to “self-report” changes in their circumstances. Specifically, any changes to income, savings, or financial situations that could impact entitlements must be accurately reported by claimants.
While the DWP usually receives earnings information directly through the Real Time Information system, or RTI, there are instances where this might not happen. Labour MP Sir Stephen Timms stated: “If earnings are not reported through RTI for any reason, the customer will need to self-report their earnings and provide evidence of these.”
Not reporting changes can lead to overpayments, which the DWP will seek to recover.
Deliberate failure to disclose such information could result in severe repercussions, including reduced payments, sanctions, or benefits being completely stopped while you may also be taken to court or charged penalties ranging from £350 to £5,000.
Sir Stephen elaborated: “We recognise that some self-employed customers, including those in the farming industry, are likely to report large monthly fluctuations in their earnings.
“Steps have been taken to account for this, such as allowing self-employed losses to be carried forward into future assessment periods.”
In line with the new protocols, claimants needing to update personal information, like bank details, may undergo stricter verification processes. Additionally, Case Managers and Healthcare Professionals involved in Universal Credit (UC) and Personal Independence Payment (PIP) evaluations will receive training to better identify and respond to dubious cases.
Since the onset of the pandemic, fraud and error within the welfare system have resulted in approximately £35 million being incorrectly paid out in benefits.
The forthcoming Fraud, Error and Debt Bill is designed to curb this escalating issue by targeting both widespread exploitation by criminal organisations and individual misconduct.
Further details on the Fraud, Error and Debt Bill are expected to be disclosed in Parliament shortly. The Bill was initially presented to Parliament earlier this year and is slated for implementation starting from 2026.
