DWP review could owe money to those with closed benefit claims
DWP review could owe money to closed benefit claimants

The Department for Work and Pensions (DWP) has launched a review of some previously closed benefit claims after admitting it may not have followed the correct process. People who claimed New Style Jobseeker's Allowance (JSA) between 2019 and 2023 could be owed money if their claim was closed after they failed to attend or participate in a scheduled appointment.

New guidance published by the DWP on September 24 confirms it is now reviewing potentially affected cases to establish whether decisions were made in line with the relevant guidance. The review applies to people in Scotland, England and Wales, with the DWP writing directly to anyone it believes may have been affected.

Who could be owed money?

According to the DWP, someone may be affected if they had a New Style JSA claim between 2019 and 2023 and were notified about a scheduled appointment either by telephone or in person. The review covers cases where the claimant did not attend or participate in that appointment and their New Style JSA claim was subsequently closed.

The DWP guidance states: "During this period, DWP may not have followed the correct process when closing some claims. We are reviewing potentially affected cases to ensure that decisions were made in line with the relevant guidance."

People do not need to contact the DWP now to find out whether they are included in the exercise. The department says it will send a letter to anyone who may have been affected.

One-month deadline to respond

Anyone who receives a letter must call the telephone number provided at the top of it within one month. During the call, people will be asked to provide their name, including any previous name, National Insurance number, address, telephone number and bank details.

The DWP will also gather additional information to help establish whether the person's claim was incorrectly closed. This will include asking whether they knew their claim had been closed, how they discovered this and whether they took any action afterwards. Claimants will also be asked how they supported themselves financially after their New Style JSA payments stopped.

The guidance also warns people not to ignore the letter. It states: "If you do not call the number on your letter within one month, the review will be closed and you may lose any money that is owed to you."

What happens if DWP finds a claim was affected?

Once the necessary information has been provided, the DWP will reassess the person's previous claim to determine whether they should have received additional New Style JSA payments. Where money is owed, it will be paid into the bank, building society or credit union account provided during the telephone call. People whose account details subsequently change are being told to notify the DWP as soon as possible.

New Style JSA is a contribution-based benefit for people who are unemployed or working fewer than 16 hours a week and have generally paid enough National Insurance contributions. Eligibility depends on individual circumstances. The full guidance is available on GOV.UK.