Universal Credit is a lifeline when you’re unemployed or on a low income. But what happens if you don’t need it anymore? Here’s how to cancel Universal Credit payments, and how a change in circumstances affects your benefit entitlement.
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Who can get Universal Credit
Universal Credit is a benefit payment. It replaces a host of other benefits like Income Support and Housing Benefit, and it’s designed to support people who are on a low income or don’t have a job.
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With that in mind, you need to meet certain criteria to claim Universal Credit. You can claim if you are:
- A UK resident
- Under State Pension age
- 18 or over (although some exceptions apply for 16- and 17-year-olds)
- Unemployed, or a low-income earner
You shouldn’t have more than £16,000 in savings between you and your partner (if applicable) either.
So, if that’s who can get Universal Credit, when might you cancel your claim? Let’s take a look.
When you might cancel your Universal Credit
Basically, you should cancel your Universal Credit if your circumstances change. In other words, if you’ll have more money than you did before, you might not be eligible for Universal Credit anymore. Common examples of when this might happen include:
- Moving to a new home
- Moving in with a partner
- Getting a new job
- Losing your job
- Changes in your savings or investment income
- Caring for a child or disabled person
- Changes to your (self-employed) income
So, for example, if you’re returning to work full-time after the Covid-19 lockdown, you might not need the benefit anymore.
Here’s something else to bear in mind. Some changes affect how much Universal Credit you’re entitled to, even if you don’t need to cancel your claim entirely. So, it’s important that you report any change in circumstance to the DWP right away.
How to cancel Universal Credit
If you’re ready to cancel your Universal Credit, you can do so by telephone or online. The process shouldn’t take long to complete, but you could always ask your work coach if you need a little more help.
Telephone
Give the Universal Credit helpline a call on 0800 328 5644. It’s open Monday to Friday between 8am. The number is free to call, so you won’t pay call charges.
If you’ve got any Universal Credit paperwork, the number will be on there, too.
Online
Sign in to your Universal Credit account. There’s an option to report a change of circumstances or cancel a Universal Credit claim. If you know you don’t need Universal Credit, cancelling the claim entirely means you’ll avoid any possible financial penalties.
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Have you received a Universal Credit payment before you’ve had a chance to report your change in circumstances? Don’t panic. Just contact the DWP right away through your account or by phoning the Universal Credit helpline. They’ll explain how to repay the overpaid benefit.
Takeaway
If your circumstances change, it’s fairly simple to cancel your Universal Credit claim. However, if you have any questions, it’s always best to contact the DWP before you submit your request.
Also, remember that you should always report a change in circumstances to the DWP. If you don’t need Universal Credit anymore but you don’t report your change of circumstances, you could face a financial penalty.
Are you unsure whether you can claim Universal Credit? Contact an organisation like Citizens Advice in the first instance.
