While most employed earnings are automatically received through the Real Time Information system, some cases require manual reporting – for example, if you’re self-employed
Universal Credit claimants are being reminded of Department for Work and Pensions (DWP) rules which they must follow in order to receive benefit payments.
According to the latest DWP statistics, 7.5 million people are claiming Universal Credit, the highest number since its introduction in 2013. You can claim Universal Credit if you are unemployed or you are working but on a low income.
There is no set level for how much money you get every month – what you get is dependent on your personal circumstances which include things like age, whether you live in a couple, and whether you have children.
Because of this, you need to let the DWP know of your financial circumstances – such as savings and earnings – as these details are crucial for the department to calculate the correct level of support. While most employed earnings are automatically received through the Real Time Information system, some cases require manual reporting, for example, if you’re self-employed.
READ MORE: NatWest shares exact date it will take on 1.8million customers in major takeoverREAD MORE: DWP May bank holiday payment date changes confirmed – full list
Under the rules, if you’re paid too much Universal Credit, you will have to pay it back to the DWP, and this is usually taken from your future payments.
The rules cover all Universal Credit claimants, including self-employed people. A recent parliamentary question reiterated the rules around reporting certain finances to the benefit department.
The question came from Liberal Democrat MP Ian Roome, who asked what the DWP was doing to help people who are “unable to demonstrate consistent monthly income figures” apply for Universal Credit.
In response, Labour Party MP Sir Stephen Timms said: “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. Wherever possible, employed earnings are received through the Real Time Information (RTI) system used by employers to report Pay As You Earn (PAYE) data to His Majesty’s Revenue and Customs (HMRC).
“RTI enables a customer’s Universal Credit award to be automatically adjusted to reflect their fluctuating earnings, which eases the reporting burden on customers.” Mr Timms said: “If earnings are not reported through RTI for any reason, the customer will need to self-report their earnings and provide evidence of these.”
The minister added: “We are committed to reviewing Universal Credit to make sure it is doing the job we want it to, to make work pay and tackle poverty. The review will include consideration of the support in Universal Credit for customers with fluctuating incomes.”
The GOV.UK website warns you could be taken to court or have to pay a penalty if you give wrong information or do not report a change in your circumstances which affects your claim.
Citizen’s Advice says that as soon as you know about a change that might affect your Universal Credit claim, you will need to tell the DWP as soon as you can. They advise you to do this even if the change is relatively small. It added: “It’s always better to report something if you’re not sure”.
You can report a change of circumstances by signing into your Universal Credit account online through the “Report a Change” section. You can also call the Universal Credit helpline on 0800 328 5644, but this is likely to take longer as you might have to wait for someone to answer.
READ MORE: River Island’s ‘perfect’ dress in ‘colour of the season’ is a ‘dream’