On Universal Credit? The changes you'll need to report
Avoid under or overpayments by reporting changes on time
If you get Universal Credit and your circumstances change, you might need to report the changes. Failing to do so can leave you with less than you’re entitled to, or with an overpayment you'll need to pay back. This guide explains the main changes you need to know about, plus how and when to report them.
The three main changes that affect Universal Credit
Your Universal Credit payment is based on your income, savings, health, and who you live with. If any of these change, your entitlement can too.
According to data from the DWP, there are three main changes people don't report or misreport that result in them getting the wrong amount of Universal Credit:
1: Changes to your work or how much you earn
Not properly declaring a change to your work or income is the main cause of Universal Credit overpayments, and you can be made to pay back any money you weren't entitled to.
If you work (and/or your partner works if you have a joint Universal Credit claim), the amount you get will depend on how much you earn each month. If you earn less one month, you'll likely get more Universal Credit. If you earn more, your payment will likely decrease.
Currently, for every £1 you earn after tax, National Insurance and pension contributions, your Universal Credit payment is reduced by 55p. If you're eligible for a work allowance (for example, because you have children or a disability), you can earn up to a set amount each month before the 55p reduction starts to apply.
If you work for an employer, you'll usually be paid via Pay As You Earn (PAYE), and your earnings will be reported to HMRC by your employer.
That means you don't need to do anything. HMRC will tell the DWP about your income, and the DWP will calculate how much Universal Credit you're entitled to.
If you're self-employed, you'll need to declare this when you put in your Universal Credit claim. If you're newly self employed, or have stopped being so, you should report the change as soon as possible by going on your Universal Credit account (go to 'Report a change' then 'Work and earnings') or by calling the Universal Credit helpline.
It's important to know you won't get your next Universal Credit payment until you report your business income and expenses - so making sure you report this change in time is crucial.
What you need to report at the end of each assessment period
Once you've declared yourself as self-employed, at the end of each assessment period you'll need to report:
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How much you earned from self-employment: even if you didn't make anything at all that month.
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Any money you paid into a pension: the DWP will deduct any money paid into a pension when calculating your income.
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Payments into and out of your business: for example, any expenses (such as travel or equipment), tax or national insurance. Make sure you only report genuine business costs, things such as lunch or non-business travel costs are considered personal expenses. Reporting these might misrepresent how much profit you've made and result in you getting the wrong amount of Universal Credit.
Earn money from informal activity, such as selling old clothes online or babysitting?
Money from things like selling your old clothes on Vinted or babysitting for a neighbour every now and then isn't considered income for the purposes of Universal Credit, but you'll still need to report it as capital.
If you're unsure of whether you work is considered 'self-employment' or is more casual, you should contact the DWP by calling them on 0800 328 5644 (see other accessible options), asking a questions in your Universal Credit journal, or speaking to your work coach.
2: Changes to a relationship
Universal Credit is worked out based on who you live with and your relationship to them.
If you live with a partner, their circumstances will be taken into account and you'll both get your Universal Credit paid in one lump sum into the same bank account.
Not declaring whether you live with your partner can result in you receiving Universal Credit that you might not be entitled to – and having to repay it.
If you move in with a new partner...
If you move in with a new partner, your Universal Credit will be impacted by how much they earn, any savings they have, and their personal circumstances (such as if they have children, or are disabled).
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If you both claim Universal Credit you'll need to link your claims: you should report the change in your relationship in your online journals, and the DWP will then help you to link your claims.
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If one of you claims Universal Credit and the other claims another means-tested benefit (such as pension credit): reporting that you've become a couple will usually mean you're both moved onto a joint Universal Credit claim (and the other benefit will stop).
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If only one of you currently claims Universal Credit: the other will need to open an account only, declare they have a partner, and will be given a 'linking code' which you can use to join your accounts together.
If you separate from your partner...
You should tell the DWP as soon as possible that you and your partner have separated.
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If you have children, you'll need to tell the DWP who looks after them most of the time, so it can work out who should continue to get any child element. It can also impact how much work allowance you each get.
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If the childcare spilt is completely 50/50, you'll need to decide who gets the additional child-related elements in their UC payment.
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If you're going to continue living with your ex-partner, you can still separate your Universal Credit claims so payments go to separate accounts (based on your personal incomes).
You should report the change in your relationship status to the DWP using your online journal, or the Universal Credit helpline, and explain why you're still living together (for example, you can't afford to move out).
3: Changes to your savings
Saving for emergencies is a good idea if you can manage it. But if you're claiming Universal Credit, the amount you have in savings (called 'capital') can affect how much you get.
You'll need to tell the DWP if your savings go up or down, as this could change your Universal Credit entitlement. If you're claiming as a couple, your savings are added together.
Here's how the rules work:
Savings of less than £6,000 won't count. If you have less than £6,000 in savings you'll need to declare it, but it won't affect how much Universal Credit you get.
Savings between £6,001 and £16,000 will reduce your Universal Credit amount. Savings above £6,000 are treated as if they give you a monthly income of £4.35 for each £250 (or part of £250), regardless of whether it does or not. So if you have £6,300 in a savings account, £6,000 of it will be ignored and the other £300 will be treated as if it gives you a monthly income of £8.70.
Savings of more than £16,000 mean you normally can't get Universal Credit.
Even if you're on Universal Credit, Help to Save is worth considering
If you're on Universal Credit and you (or you and your partner on a joint claim) had take-home pay of £1 or more in your last monthly assessment period, you may be able to open a Help to Save account:
You can save £1 to £50 each calendar month, and the Government pays a bonus based on what you've saved.
If you save the maximum £50 a month for the full four years, you could receive up to £1,200 in a tax-free bonus.
Money in a Help to Save account will count towards your savings for Universal Credit purposes, so it forms part of the £6,000 and £16,000 limits mentioned above.
What counts as savings?
The savings taken into account you should declare when applying for Universal Credit or – if you’re already on Universal Credit – when you come to own them are listed below:
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Money in savings accounts held with banks, building societies, credit unions, Post Office and National Savings and Investments (NS&I) accounts, any types of ISA, and Help to Save accounts.
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Premium bonds. Declare the face value of the bonds, including any money won but not potential winnings.
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Money in current accounts and digital-only accounts like PayPal.
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Cash. This includes any cash you might have received as a gift from friends or family.
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Unspent income, including from benefits. Your income is counted as savings if it has not been spent by the end of the assessment period after the one in which you were paid.
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Investments and cryptoassets. As these can change a lot during short period of time, you don't need to report a change every day. Just report the value of any investments or cryptoassets at the end of your assessment period.
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Savings for children in your name. If you have some money set aside that you intend to be for your children, but it’s in an account in your name, you’ll need to declare it.
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Money that belongs to someone else but is in your name.
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Inheritance payments. You need to declare the money as soon as you receive it in your bank account.
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Redundancy pay. Redundancy pay is counted as capital not as income, so it shouldn’t affect your Universal Credit payments unless it takes you over the thresholds. You should report a job loss as soon as you know, and the redundancy pay as soon as it hits your bank.
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Pension and life insurance lump sums. If you get annuity from a pension, this will need to be reported as income.
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Divorce settlements.
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Property you own but don't live in.
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Property, land and savings abroad.
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Business accounts and assets for a business that closed over 6 months ago.
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Money in trust funds.
When do I report changes to my savings?
You need to report any changes to your capital as soon as you can. What’s important with this, as with every change, is reporting within the assessment period to ensure your next Universal Credit payment reflects your proper entitlement and isn’t either too low (leaving you out of pocket), or too high (which will result in an overpayment you will need to pay back). Reporting is particularly important if you know the change might affect your benefit.
For example: You're given £1,000 by a family member on 15 March. This money brings you over the £6,000 lower limit for capital. Your assessment period ends on 30 March. It’s important you notify the DWP of the money before that date.
If you don't. your next Universal Credit payment will be calculated without taking the £1,000 into account. This is especially important because the money brings you over the lower limit for capital, meaning you will be entitled to less Universal Credit.
If you don't declare it, you'll be overpaid Universal Credit and will need to pay it back – usually via a payment plan and reduction to your benefits. You may also be given a £50 civil penalty if the DWP think the overpayment was your fault for not reporting properly.
How to report a change
The quickest and easiest way to report most changes is through your Universal Credit account.
After signing in, select 'Report a change' and choose the option that best matches your situation. This includes changes to your:
Work and earnings
Living with a partner
Money, savings and investments
Health
Caring responsibilities
Children or other people in your household
Time spent outside Great Britain.
Follow the instructions on screen. Depending on the change, you may be asked to provide more information or evidence. For example, if you're reporting a change to your savings, you may need to provide bank statements.
The DWP also has short videos explaining how to report some of the most common changes.
You might be asked for more information when you report your savings
You can report changes to your capital by logging in to your Universal Credit account, then going to 'Report a change' and 'Money, savings and investments'.
After you do this, you'll be asked to tell the DWP about the value of all your money, savings and investments, so it's a good idea to have the information to hand before you start.
You might be asked to verify your reported capital, usually via your Universal Credit journal. You should be told what evidence is needed, such as bank or building society statements, and how to provide it. PDFs tend to be preferred, but if it's not possible for you to get a PDF statement for some reason you should flag this on your Universal Credit journal and you'll likely get an alternative approach approved, such as a screenshot.
Not sure if your change needs reporting?
If you're unsure whether something needs reporting, or you're not certain which category it falls under, send a message through your Universal Credit journal or ask your work coach. When using your journal:
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Explain the change clearly and include key dates, such as when your circumstances changed
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Try to include everything in one message rather than sending several updates
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Choose the journal category that seems most relevant, but don't worry if it isn't a perfect match
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Keep a copy of your message and the date you sent it for your records.
Can't report online?
You can also report a change by calling the Universal Credit helpline on 0800 328 5644.
There are other ways to get in touch if you're deaf, have hearing loss or are visually impaired. If you report something over the phone, make a note of it in your journal afterwards so you have a written record.If someone else manages your claim
Flag if you think you'll struggle with reporting changes
If you think you'll struggle to engage with the DWP or your work coach as often as you'll need to, you should flag this (via your UC journal or the helpline) and explain why – for example, if you have a mental health condition or chronic illness that makes it hard for you to meet deadlines.
The DWP should be able to provide support and make reasonable adjustments, such as additional support from your work coach, tailoring communication methods to your needs.
You can also allow another person to help manage your claim either by naming them an appointee or via temporary 'explicit consent'.
The Government website has more detail on reporting Universal Credit changes. It also includes video tutorials on how to use your Universal Credit account to report certain changes.
Report most changes as soon as they happen
To avoid being paid too much or too little Universal Credit, you should usually report changes within the assessment period in which they happen. Your assessment period is the four-week period the DWP uses to work out your next payment. You can find the dates in your Universal Credit account.
Depending on what sort of change you're reporting, will dictate when it's best to do it:
Most changes: report them straight away
As a rule, report one-off changes as soon as they happen. This includes things such as:
receiving a lump sum (for example, an inheritance or redundancy payment)
a child moving out of your home
going abroad.
Reporting promptly helps make sure your next payment is correct and reduces the risk of an overpayment.
Some changes: report at the end of your assessment period
For savings and investments that change in value, you don't usually need to report every change.
For example, if you have stocks, shares or cryptocurrency, report their value at the end of your assessment period. Likewise, you don't need to report every interest payment added to your savings separately.
However, if your total savings cross an important Universal Credit threshold (such as £6,000 or £16,000), report this as soon as possible.
If you're unsure, ask: If you don't know whether a change needs reporting, send a message through your your Universal Credit journal or speak to your work coach. It's usually better to ask than assume.
FAQs
How do I report a change to my health?
This is a change that causes particular confusion, especially as for many people with health conditions or disabilities, your condition may fluctuate day-by-day – meaning some days you might be able to do things that on others are impossible.
Some more straightforward things you will need to declare in relation to your health are:
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Any medical treatments you are receiving. Including new treatments and when existing treatments stop.
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Changes to prescription medication (stopping/starting/dosage) – check with DWP
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If you’re pregnant
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If you’re in or expecting to go into hospital
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A new diagnosis
Reporting changes to your health condition
Less clear is reporting ‘changes to your health condition, for example it gets better or worse.’ As many with mental or physical health conditions have fluctuating symptoms, it can be difficult to know what is worth reporting and what isn’t. What the DWP are interested in is a sustained change - whether an improvement or worsening - that impacts your ability to work.
Important: You don't need to provide any updates to your condition if you’re nearing the end of your life – defined by DWP as being told by a medical professional that you have 12 months or less to live.
Temporarily sick and self-employed
If you’re self-employed and temporarily too ill to work, you should call the DWP to request that they treat you as not being in gainful self-employment while you’re sick. This would mean that your UC should be higher as the {minimum income floor} wouldn’t apply.
I'm late reporting a change for personal reasons, what happens now?
If you got an overpayment of UC because you were late reporting a change, you will have to repay it in most circumstances, but if you have a compelling personal reason for the delay (for example a bereavement) you might have grounds to challenge it. See our guide on repaying a Universal Credit overpayment for more details.
If you got less UC than you were entitled to because you were late reporting a change, [checking].
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