Our interviews show that claimants did not have the information they needed or wanted to understand how moving to UC would affect them. Such misinformation and misunderstanding are likely to be reasons some people are not moving to UC despite having a strong financial incentive to do so.
At the start of the pandemic, the Department for Work and Pensions (DWP) relaxed some evidence checks for people making a universal credit (UC) claim to provide quicker access to benefits. In January 2021, the DWP began reverifying the details of claims made while evidence checks were eased. This has resulted in some claimants being asked to pay back the entirety of their UC award. More than a year after the exercise started, we continue to hear from people who have had their UC payments stopped, who have received demands to repay all the UC they received, and who are unable to understand or challenge the DWPs decision.
New data released today shows that 4.1 million households were claiming universal credit (UC) in February 2022. Benefits were recently increased by less than half the rate of inflation, meaning these families saw the real value of their UC fall by £660 a year on average. And while benefit levels sit at historic lows, an estimated 1.8 million households are receiving an average of £61 less each month than they are entitled to because of automatic deductions from their UC payment.