DWP Universal Credit account checks to focus on these 18 financial savings
The DWP is getting enhanced powers under the Labour government
The DWP is receiving strengthened powers(Image: Kathrin Ziegler via Getty Images)
The Department for Work and Pensions has pledged a clampdown on Universal Credit – with benefit recipients monitored for 18 indicators of fraud.
The DWP is receiving strengthened powers under the Labour Party administration as it seeks to tackle error and fraud. A fresh ‘eligibility verification’ provision in the new Public Authorities (Fraud, Error and Recovery) Bill will compel banks and other financial organisations to surrender data to help spot cases where someone may not be fulfilling the requirements.
It will mean that banking personnel must inform the DWP when a recipient’s account balance exceeds the capital thresholds. Anyone claiming Universal Credit is permitted to hold up to £16,000 in savings across all accounts – if it rises beyond that figure, their entitlement ceases, reports Birmingham Live.
The DWP clarified: “When we assess your entitlement to Universal Credit, we take into account as capital the value of all money, savings and investments you own, or jointly own with someone else. The amount you (and your partner) have can affect whether you’re eligible for Universal Credit, and how much you receive”.
It stated all money, savings and investments someone possesses in the UK and overseas are taken into consideration. These encompass the following 18 categories of capital, which are all totalled to determine whether someone remains below the £16,000 threshold:
- cash
- money in your bank account
- current accounts and digital-only accounts such as PayPal
- savings accounts in a bank, building society, credit union, Help to Save, Post Office and National Savings and Investments (NS&I) accounts
- savings for children in your name
- money that belongs to someone else but is in your name
- savings for essential building work (unless from a grant or loan)
- savings for medical care
- Individual Savings Accounts (ISAs): cash, stocks and shares, Innovative Finance, Help to Buy, and Lifetime ISAs
- Premium Bonds, dividends, stocks and shares
- cryptoassets
- property you own but do not live in yourself (except in certain circumstances)
- property, land and savings abroad
- inheritance payments
- business accounts and assets for businesses that closed over 6 months ago
- money in trust funds, apart from in certain circumstances
- unspent benefits, such as Child Benefit, Personal Independence Payment (PIP) and Disability Living Allowance (DLA)
- unspent income
The DWP noted that it does not factor in debts or the worth of personal belongings when calculating a person’s total money, savings, and investments.
You also don’t need to tell officials about:
- life insurance policies that have not been paid out
- funeral plan contracts
- savings or investments belonging to your children and in your children’s name
- business accounts and assets for businesses that are still operating or have closed in the last six months
