The UK government is set to change the rules for Universal Credit claimants starting April 2025. The Department for Work and Pensions (DWP) has confirmed that recipients will now be required to confirm any changes in their circumstances regularly. This move aims to reduce benefit overpayments and cut millions from the benefits bill. With 7.5 million people currently receiving Universal Credit, this update will impact a large number of claimants.
Current Universal Credit Reporting Rules
Under the existing rules, anyone receiving Universal Credit must report changes in their circumstances to the DWP immediately. These changes may include:
- Getting a new job or an increase in income
- Moving to a new address
- Changes in household composition (such as having a child)
Failure to report these changes can result in overpayments, which the claimant must repay. In some cases, a penalty fee of £50 may also apply.
New Reporting System from April 2025
Starting April, claimants will receive official prompts from the DWP asking them to confirm whether their circumstances have changed. This update was first mentioned in the October 2024 Budget but has now been officially scheduled for rollout.
Sir Stephen Timms confirmed in Parliament that:
“The department will prompt Universal Credit claimants to confirm whether they have had a change in circumstances that might affect their claim.”
What Will Change?
- Claimants will be required to confirm their circumstances periodically.
- The frequency of these prompts will be tested before full implementation.
- Any reported changes will still be processed in the usual way by the DWP.
Why Is the Government Making These Changes?
The government is introducing this system to prevent overpayments and fraud, which cost the benefits system millions each year. By ensuring regular updates, the DWP aims to:
- Reduce errors in payments
- Prevent claimants from unintentionally receiving incorrect benefits
- Encourage accountability among Universal Credit recipients
To support this new process, the Treasury has allocated £110 million in 2025. It expects these measures to save £250 million by 2029-2030.
Universal Credit Payments to Increase in April
Alongside the rule changes, Universal Credit payments will increase in April as part of the annual uprating to match inflation. All benefits will rise by 1.7%, based on the September 2024 inflation figure.
Inflation Concerns
Campaigners had urged the government to consider a higher increase, as inflation was higher earlier in the year. In January 2024, inflation stood at 4%, before dropping below 2% and rising again in October. However, the government decided to stick with the 1.7% increase.
Expert Advice for Claimants
Halide Kalfaoglu, a benefits expert at Turn2us, advises Universal Credit recipients to stay informed about these changes. She recommends:
- Keeping records of any updates to your circumstances
- Responding quickly to DWP prompts
- Seeking professional advice if unsure about how a change may impact payments
By following these steps, claimants can avoid potential payment issues and ensure they continue to receive the correct amount of support.
The new Universal Credit rules set to roll out in April 2025 will require claimants to confirm their circumstances regularly. This change is intended to prevent overpayments and cut costs in the benefits system. While the annual payment increase will help with inflation, some campaigners believe it is not enough.
With these new requirements, it is now more important than ever for claimants to stay updated, report changes promptly, and seek advice when needed. The coming months will reveal how effective this new system is in improving benefits management.
FAQ’s
1. What are the new Universal Credit rules starting in April 2025?
From April, claimants will be prompted by the DWP to confirm whether their circumstances have changed, helping to prevent overpayments.
2. Do I still need to report changes myself?
Yes, claimants must continue to report changes immediately. The new system will serve as an additional prompt rather than replacing this requirement.
3. How often will I need to confirm my circumstances?
The DWP is currently testing the frequency of these prompts. More details will be available after the rollout begins.
4. What happens if I don’t confirm changes?
Failing to report changes may result in overpayments, which you will need to repay. A penalty fee of £50 could also apply.
