Seven reasons Universal Credit claims fail as 900,000 cases closed by DWP

Over six million people in the UK claim Universal Credit and although millions of new claims are accepted each year thousands fail.

The Department for Work and Pensions has issued a benefit warning as the top reasons why Universal Credit claims fail is revealed. Over six million people in the UK claim Universal Credit and although millions of new claims are accepted each year thousands fail.

DWP figures show between July 2023 and June 2024, a total of 896,000 Universal Credit claims were closed without a penny being paid. Of the nearly 900,000, around 63,800 were closed because the claimant failed the habitual residence test.

92,000 cases were closed without payment because the claimant had "insufficient evidence". This includes things such as not having a valid UK passport, not having payslips dated within the last three months or your most recent P60.

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Around 366,400 claims were closed because the claimant either failed to book an interview or failed to attend it, or didn't accept their "claimant commitment". Ayla Ozmen, director of policy and campaigns at charity Z2K, told The Sun that applying for Universal Credit was a "complex process" and the DWP can "unnecessarily complicate it further".

He said: "It’s particularly concerning to see that the DWP is refusing so many universal credit claims on procedural grounds, such as not providing the correct documents. We know that people struggle to meet all of the requirements of the claims process, often because of a disability or because they have difficulty using computers. This can lead to people missing out on vital income. The DWP should take steps to streamline and simplify the claims process."

A spokesperson for the DWP told the Sun: “We support millions of people every year through Universal Credit, and our priority is to make sure people get the support they are entitled to. That includes working with customers to ensure they feel confident and informed throughout the application process, and a free Help to Claim advice service is available to assist people with making their claim.”

Reasons why your Universal Credit claim could fail

• Withdrew the claim - 113,000 claims rejected
• Failed the Habitual Residence Test - 31,400 claims rejected
• Had insufficient evidence - 55,000 claims rejected
• Found not to be eligible or entitled - 6,900 claims rejected
• Ineligible capital - 8,200 claims rejected
• Failed to attend an initial interview - 100,000 claims rejected
• Claimant commitment not accepted, or did not book a claimant commitment interview - 88,000 claims rejected