By Samantha Leathers

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The Department for Work and Pensions has issued an urgent alert to all Universal Credit claimants who are self-employed and earning an income . Taking to X, the DWP wrote: “If you are self-employed and your income changes, remember to report any changes on your Universal Credit account. Your information needs to be up to date so that you aren’t overpaid.” A video accompanying the post added: “Not reporting changes could mean you are paid the wrong amount. And you might have to pay it back.” Every Universal Credit payment is worked out based on your circumstances in the weeks before that payment. Failing to keep the Department informed during that period could result in your payment being incorrect and may lead to a range of consequences. If your details are outdated, your Universal Credit might be excessive, which typically must be repaid through reductions from future Universal Credit payments. Your payments might also be insufficient, meaning you could be entitled to additional support beyond what you’re currently receiving or even realise you’re owed. Those who are self-employed frequently face income variations, making it crucial that they keep the DWP informed to prevent both underpayments and overpayments. If the DWP suspects you have supplied false information, you might face a penalty or could even face court action in certain situations. The official government website states: “You could be doing this unknowingly…It might also affect how much you can claim in the future.” It’s not just your personal income that can impact your benefit claim. The government has highlighted the top three most common changes in circumstances that need to be reported promptly. Your earnings, your partner’s income and anyone else who contributes to your household expenses can affect your Universal Credit payment. Employees on a payroll usually have their wages automatically reported to the DWP in real time through the PAYE system. However, if you’re self-employed or receive an income that isn’t paid directly through an employer’s payroll, you’ll need to inform the DWP yourself. If your living costs change, such as a rent increase, you’ll also need to notify the DWP as soon as possible. Universal Credit claimants must report any changes in the value of their savings or investments to the DWP as a change in circumstances. If you switch banks or your bank account details change, you’ll also need to update the department. Claimants must inform the DWP if anyone moves in or out of their home. This includes if a child leaves, someone passes away, or you or your partner go abroad for any length of time. If a child stops or restarts education or training between the ages of 16 and 19, this must also be reported. The DWP must be informed about any changes to your health, caring responsibilities or your address. More information about changes of circumstances can be found on the Gov.uk website. To notify a change in circumstances, you can log into your online account and select the ‘report a change of circumstances’ tab or utilise the Universal Credit helpline.