Why Reporting Changes Makes Such a Big Difference For Benefit Recipients

When someone is managing a benefit, they are primarily required to a) ensure that payments are being used for the correct purpose, and b) keep the DWP up to date with any circumstantial changes that occur. 

A circumstantial change in this case denotes any change in a person’s life that could impact their benefit entitlement. As a person’s eligibility to any given UK benefit is typically contingent on specific personal and circumstantial factors, reporting these changes is one of the most important parts of maintaining an accurate benefit claim. 

Below is a non-exhaustive list of some of the key changes that can make a significant difference for a claimant. The relevancy of each change will differ between benefits, dependent upon the basis for the claim: 

• Changes To Where You Live – This includes a new address or accommodation type (e.g. care home, hospital, own home); changes to rental costs; household composition. 
• Changes in Personal Circumstances – Such as a change of name, gender, marital status, or disability. 
• Changes To Financial Situation – Including wages, savings, or account details. 
• General Changes – This could be a change of phone number, email, or correspondence address (which can differ from home address for those with legal representatives). 

Due to typical benefit payment schedules, the DWP generally ask that they are informed of all changes within one month of them occurring – ideally as soon as the change occurs. These notifications can be made via phone or post (although, the former is often more efficient due to processing times). Delaying or failing to report these changes can therefore make a big difference for individuals receiving payments. This can lead to a number of consequences, as below:

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Insufficient Communication With The DWP

When communicating with the DWP about a benefit claim, they are required to ask a number of questions for authorisation. These questions typically concern the recipient’s name, date of birth, and National Insurance Number, amongst various other relevant matters. 

Where they are not kept up to date with someone’s situation, and the individual contacting them is, there is likely to be difficulty. For example, if the DWP still hold an old address as current, but the person calling states a new address, there is a chance that the agent will ask you to call back due to a failed security process. This can be a frustrating outcome after waiting for a long time to get through. 

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Amounts Paid 

Different financial changes can impact the amount of benefit that can be paid, and when. For those with savings above £6000, payments will be reduced by a certain amount, depending on the benefit. Generally, those with savings over £16,000 are not eligible benefit recipients. To note, of this £16,000, all must be eligible to be counted as savings. For example, a large benefit back payment that has pushed someone beyond this threshold cannot be reasonably considered in this regard.

Whether or not a benefit is means-tested will also impact the amount paid. Means-tested benefits (such as Universal Credit or Housing Benefit) will increase or decrease relative to the capital an individual holds, alongside their personal circumstances. On the other hand, non-means-tested benefits (such as PIP or State Pension) are primarily impacted by personal circumstances, as these would have determined the conditions under which the benefit was awarded.

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Over/Underpayments

Typically, the most significant impact that delaying or failing to inform the DWP can have, is the creation of an over/underpayment. Where a change occurs that will impact someone’s entitlement, payments continue to be paid as usual until this change is brought to attention. So, if someone receives their payment for the period despite a change occurring 3 weeks ago, for example, an erroneous payment will develop from the difference between what they should have received, and what they actually received. 

In many instances, the DWP will arrange for these payments to be paid or deducted alongside any payments going forward. Essentially, this means that deductions will be taken off of regular payments for a select period, or a certain amount will be added over this period. 

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So, understandably, when it comes to reporting changes, the sooner the better. Delaying or failing to report a change can have significant impacts not only on an individual’s benefit claims, but also on their livelihood relative to this. Therefore, where it can be avoided, changes should be reported as soon as possible – even if this requires some patience on the phone while waiting to get through to someone!

If you or someone you know could benefit from assistance with managing a benefit claim, don’t hesitate to reach out. Call us on 0161 791 3064, or drop us a message at info@moneycarer.org.uk. We’re here to help.