The DWP has confirmed a new campaign to tackle Universal Credit fraud will begin at the end of January, 2026. The crackdown will focus on living circumstances, self-employment, and savings
The Department for Work and Pensions (DWP) has unveiled plans for a new initiative set to combat Universal Credit fraud. It’s due to start at the end of January 2026.
DWP minister Andrew Western confirmed that the campaign will target three areas: living circumstances, savings, and self-employment. His remarks were made in a written response to Labour MP Callum Anderson’s query regarding ‘the potential impact of public information campaigns on levels of benefit-related fraud’.
In his reply, the minister said: “DWP will be launching a new campaign at the end of January 2026. This campaign will focus on the three greatest key loss areas for the Department – living together, self-employed, and capital and savings.
“It will run across a range of channels, including on demand video, out-of-home, digital display, paid search and paid social.” Mr Western added: “The campaign’s communications objectives are to increase awareness of the consequences of not reporting changes of circumstances to DWP and to increase understanding of the types of changes of circumstances that need to be reported amongst Universal Credit customers.”
The DWP provides welfare benefits to approximately 23.7 million individuals throughout Great Britain, a figure which includes over 8 million people receiving Universal Credit, reports the Daily Record.
The recently released annual ‘Fraud and error in the benefit system’ report, which calculates how much money the Department has incorrectly distributed in the 2024/25 financial year, either through excessive payments or insufficient payments, reveals that £9.5 billion was overpaid to claimants, representing 3.3 per cent of total benefits spending.
This marks a decrease from £9.7bn (3.6%) in 2023/24. The overall rate of benefit underpayments stayed unchanged at £1.2bn (0.4%).
To be eligible for DWP benefits, including Universal Credit, individuals must satisfy specific qualifying conditions and the sum they receive is determined by their personal situation.
The DWP clarified: “Sometimes people tell us the wrong information or do not tell us when their circumstances change. Reporting accurate information and providing evidence may change the amount of benefit people are eligible for and in some circumstances, they may be eligible for more money.
“However, we cannot calculate the correct amount unless people tell us accurately about their circumstances. This means that people are not eligible for increases in the amount of money they receive until we have the correct information.”
Universal Credit is a means-tested benefit that’s typically paid monthly, though some residents in Scotland may receive fortnightly payments. Nevertheless, numerous claimants remain unaware of specific circumstantial changes that must be disclosed to the DWP, as failure to do so could affect their eligibility or payments and, in certain instances, result in penalty fines or court proceedings.
Nearly 20 modifications require reporting, such as acquiring a new mobile number or email address, changing bank accounts, relocating, and rent increases or decreases.
DWP guidance on GOV.UK states: “You could be taken to court or have to pay a penalty if you give wrong information or do not report a change in your circumstances.”
Changes requiring DWP notification
DWP guidance on GOV.UK emphasises that reporting changes in your situation ensures you continue receiving the correct monthly amount. It stresses that changes must be reported “as soon as they happen” since any postponement “may mean you receive too much money and will have to make a repayment”.
The DWP alerts: “Changes in your circumstances can affect how much you’re paid for your whole assessment period – not just from the date you report them.”
Modifications can include
- Finding a job
- Finishing a job
- Having a child
- Moving in with your partner
- Starting to care for a child
- Starting to care for a disabled person
- Your child stopping or restarting education or training, if they’re aged 16 to 19
- Changing your mobile number
- Changing your email address
- Moving to a new address
- Going outside Great Britain for any length of time, if you live there
- Going outside Northern Ireland for any length of time, if you live there
- Changing your bank details
- Your rent going up or down
- Changes to your health condition
- Becoming too ill to work or meet your work coach
- Changes to your earnings (only if you’re self-employed)
- Changes to your savings, investments and how much money you have
- Changes to your immigration status, if you’re not a British citizen
How to notify of a change
The DWP advises that claimants can notify circumstantial changes by logging into their online Universal Credit account.
If you find work
If you secure employment or extend your working hours Utilise a benefits calculator or consult with your work coach to understand how securing employment or an increase in your income could impact your Universal Credit claim.
The majority of employers will report your earnings on your behalf. Typically, you’ll only need to declare monthly earnings if you’re self-employed.
If you’ve received an overpayment from the DWP
You may be required to return the funds if you:
- did not report a change straight away
- gave wrong information
- were overpaid by mistake
Comprehensive information about benefit overpayments can be found on GOV.UK here.
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