Universal Credit helps millions across the UK with monthly financial support. But did you know failing to report certain life changes to the Department for Work and Pensions (DWP) could land you in serious trouble—like fines or even court?
Let’s break down what you need to know and do to avoid losing money or facing penalties.
Universal Credit Is Growing—But So Are Risks
As of January 2025, 7.5 million people in Scotland, England, and Wales were receiving Universal Credit. That’s up from 6.4 million the year before. But many people don’t realize that any change in your circumstances must be reported immediately to the DWP.
If you delay or forget, it could:
- Reduce or stop your payments
- Leads to repaying money
- Result in a fine or legal action
Changes You MUST Report to DWP
These changes can affect how much you’re paid for the entire month—not just from the day you report it. Here’s what to watch out for:
Changes in Your Personal Life
- You get a new job or finish one
- You move in with a partner
- You have a child or start caring for one
- You begin caring for a disabled person
- Your child (aged 16–19) starts or stops education
Contact & Banking Updates
- New mobile number or email address
- Change your bank details
- Move to a new home
Location & Travel
- You go abroad, even temporarily (outside Great Britain or Northern Ireland)
Financial Changes
- Your rent increases or decreases
- Your health condition changes
- You become too ill to work
- Your earnings change (especially if you’re self-employed)
- You gain or lose savings or investments
- Your immigration status changes (if you are not a UK citizen)
Important: These changes must be reported as soon as they happen via your Universal Credit online account.
If You Don’t Report a Change
The consequences can be serious:
- You may be overpaid and asked to repay the money
- You might face a financial penalty
- You could even be taken to court
How to Report Changes
Report through your Universal Credit online account.
If you’re self-employed, you may need to manually report monthly earnings. Most employers report employee income directly.
Hardship Payment Refunds – You Might Be Owed Money
Between 2014 and 2021, some people took out Hardship Payments when their benefits were reduced due to sanctions or fraud penalties. If the DWP refused to stop the repayments or lower the amount—and this caused financial or health issues—you could apply for a refund.
You may qualify if:
- You asked the DWP to stop the repayments between Jan 1, 2014, and Jan 11, 2021
- Your request was refused
- The repayments affected your health, well-being, or ability to pay bills
How to Apply for a Hardship Refund
- Visit GOV.UK and fill out the application form
- You’ll need evidence from the time, such as:
- Bank statements
- Medical letters
- Proof of loans or debts
- If you don’t have all the evidence, still apply—more information helps, but it’s not mandatory.
- You can also write a letter instead of using the form. Send it (and any documents) to:
Freepost DWP UNIVERSAL CREDIT FULL SERVICE
Key Takeaways
Always report life changes quickly—even small ones like a new phone number
Use your online Universal Credit account to update the DWP
You may be owed money if you had a Hardship Payment and struggled with repayments
Apply for a refund before 4 May 2025
Stay informed and avoid penalties by keeping your details up to date
FAQs
Why do I need to report changes to the DWP?
Because Universal Credit is means-tested, any change in your circumstances could affect how much you are entitled to. Not reporting a change could result in overpayments, reduced benefits, penalty fines, or even court action.
What happens if I forget to report a change?
If you don’t report a change:
- You could be overpaid, and DWP will ask you to repay the money
- You may face a penalty or fine
- In serious cases, you could be taken to court for benefit fraud
Do I need to report small changes, like a new phone number or email address?
Yes! Even small details like your contact info or a change in your rent must be updated. The DWP uses this information to contact you and calculate your payment correctly.
Will reporting changes affect how much Universal Credit I get?
Yes. Some changes may increase your payment (like having a child), while others may reduce it (like a new job or increased savings). The DWP adjusts your payments based on your current situation.
Where can I get help if I’m unsure what to report?
You can:
- Ask your work coach via your online journal
- Visit GOV.UK for official guidance
- Speak to a Citizens Advice Bureau or welfare rights advisor
