DWP Issues 14-Day Warning Over Universal Credit Payment Suspensions
The Department for Work and Pensions (DWP) has issued a critical update regarding the expansion of its targeted case reviews for benefit recipients. Claimants are now being warned that they must provide evidence to continue receiving their payments, with a strict 14-day deadline that could result in suspensions if not met.
New Powers to Check Bank Accounts
This announcement follows the recent enactment of new legislation granting DWP officials enhanced powers to clamp down on incorrect benefit payments. The regulations permit investigators to request bank account details for individuals on Universal Credit, Employment and Support Allowance, and Pension Credit. This move aims to identify claimants who may not be entitled to their benefits, with the potential for these checks to be extended to other DWP benefits in the future.
Targeted case reviews involve DWP officials verifying a claimant's details to ensure payment accuracy. They will contact the person directly, requesting evidence as part of the procedure. The DWP initiated these reviews in 2022 to scrutinise Universal Credit claims and is now expanding them to include Pension Credit claims.
What the Reviews Entail
A DWP spokesperson explained: "We have introduced major reforms to ensure people are paid the correct benefits, to recover overpayments and to help save billions of pounds for the taxpayer." Claimants must provide evidence such as identification to verify their identity and bank statements to confirm specific aspects of their claim, including earnings, additional income, savings, or housing costs.
These checks are designed to provide an accurate picture of circumstances, ensuring correct payment amounts and appropriate support, such as assistance to prevent or manage debt. The standard method for submitting evidence is through electronic copies uploaded via a Universal Credit account.
Financial Impact and Savings
Targeted case reviews have already saved taxpayers £1 billion by blocking incorrect Universal Credit payments and are projected to save an additional £1.2 billion in 2030-31. From 2026 to 2029, the DWP will review Pension Credit claims at risk of error, with an estimated saving of £500 million over this period.
The department has allocated significant funding for these efforts, including £300 million to £400 million annually for the Universal Credit review programme and £70 million per year to expand checks to Pension Credit claims. Overall, the DWP has been granted a total of £3.5 billion to clamp down on erroneous payments from 2026/2027 onwards.
Consequences of Non-Compliance
The DWP has directed claimants to a tutorial video explaining how to upload evidence, emphasising that agents require submission "within a 14-day deadline." Failure to comply may result in claim suspensions, though staff will tailor their approach for each case to determine appropriate actions and provide additional support.
This support can include offering calls to discuss the process, guiding customers through uploading information, granting more time to provide requested details, or organising home visits. Customers under review are also provided with guidance on how to contact their agent with any questions or concerns.
Senior DWP official Peter Schofield recently informed MPs about the expansion of these reviews, highlighting the department's commitment to accuracy and fraud prevention in the benefits system.
