Universal Credit claimants are being reminded to keep their circumstances up to date as the Department for Work and Pensions (DWP) strengthens checks designed to identify incorrect benefit payments.
Official figures show that Universal Credit overpayments totalled around £6.72 billion in the financial year ending 2026, with 21% of UC claims estimated to have been overpaid. However, this does not mean every overpayment was caused by fraud or deliberate wrongdoing.
New DWP checks target incorrect payments
A new Eligibility Verification Measure allows banks and other financial institutions to provide limited information to DWP when an Eligibility Verification Notice is issued.
The measure currently applies to people receiving Universal Credit, Pension Credit or New Style Employment and Support Allowance.
DWP says banks can provide information such as account holders, account numbers, balances and certain overseas transaction dates when an eligibility indicator is triggered. Importantly, DWP says it cannot log into someone’s online banking or view their account in real time.
Why Universal Credit can be overpaid
Universal Credit is calculated according to a claimant’s circumstances, which can change from month to month.
Changes that may affect entitlement include earnings, savings, investments, rent, household composition and changes in who lives at the property.
Claimants are required to report relevant changes as soon as they happen. If a change is not reported and too much Universal Credit is paid, the claimant may have to repay the difference. This can also happen when the overpayment results from a mistake.
What happens if you are overpaid?
DWP will normally notify the claimant about an overpayment. If the person believes the decision is wrong, they can ask for a mandatory reconsideration, usually within one month of receiving the decision.
If the overpayment is recoverable, deductions can be made from future Universal Credit payments. GOV.UK says the normal maximum deduction for debt repayment is 15% of the Universal Credit standard allowance, although exceptions can apply.
Check your Universal Credit account
Claimants should regularly check their Universal Credit journal and payment statements. Anyone who believes they have been paid too much should contact DWP rather than assuming the money can be kept.
The new checks are intended to help identify incorrect payments, but they do not mean DWP has unrestricted access to every claimant’s bank account.
For anyone receiving Universal Credit, keeping details about income, savings, household circumstances and other relevant changes accurate remains one of the most important ways to avoid an unexpected overpayment.