Overview
- An X post from the Department for Work and Pensions urges people on Universal Credit to update their account after lump sums, inheritances or other savings increases.
- Savings below £6,000 do not affect awards, every £250 above that reduces Universal Credit by £4.35 until the £16,000 upper limit, and holdings above £16,000 generally end eligibility.
- Reportable changes include inheritance payments, redundancy pay, pension or life insurance lump sums, compensation, divorce settlements and changes in investment values.
- The DWP warns that failing to report changes can lead to overpayments reclaimed from future benefits, civil penalties or prosecution for fraud, including for deliberate deprivation of capital.
- Officials cite £3.7bn in ‘unfulfilled eligibility’ across claims from September 2023 to October 2024, largely in DLA, PIP and Universal Credit, and direct claimants to log changes under “money, savings and investments.”