Five reasons DWP could stop your benefits as one in five unaware of what the rules are

The DWP has issued a warning to Universal Credit claimants who may not be fully clued up about the benefits that they are entitled to and what could potentially stop payments

New research from the Department for Work and Pension (DWP) indicates that Universal Credit claimants are not "fully knowledgeable" about when their benefits could be stopped. A report released by the benefits department last week revealed that less than a quarter of new claimants did not know how to apply for Universal Credit, and one in five were unaware of the consequences of not adhering to the rules.

The report also highlighted misunderstandings about Universal Credit's taper and the work allowance, with some claimants under the impression that their payment would be reduced by 100% of their earnings. Over six million people in the UK are currently claiming Universal Credit, with more expected to do so in the coming year as the DWP transitions people away from Legacy benefits.

Sumi Rabindrakumar, head of policy and research at Trussell, says the DWP research demonstrates how "vital" personalised support is for claimants, especially those facing "ongoing barriers to work". He stated: "Trussell's community of food banks hear every day from people too fearful to apply for support from our social security system, and who feel they cannot trust our social security and employment support systems to provide the compassionate, tailored support they need to afford the essentials and prepare for, enter and sustain work."

"With the UK government promising a new localised model of support, it must confirm in the spending review sufficient investment to ensure announced reforms deliver accessible and trusted support for people facing significant barriers to work – particularly disabled people and people with caring responsibilities."

It's crucial to understand the rules surrounding the benefit you're claiming. Several organisations offer support and advice to claimants, including Citizens Advice, Turn2Us, Independent Age, and Law Centres, reports the Mirror.

The Mirror has compiled five common reasons why your benefit payments could be temporarily reduced or even stopped altogether. If your earnings have increased and you're employed, your Universal Credit can be affected and reduced depending on your earnings.

As your income increases, your monthly payment for Universal Credit can be reduced until you no longer need the financial support. Under the "taper rate", for every £1 you earn, your payment reduces by 55p.

Once you earn too much, your claim will close, but you should be informed about this before it happens. You can reapply if your circumstances change within six months of your last Universal Credit claim.

Some people can earn more money while on Universal Credit due to the "work allowance", and you can earn this set amount before your benefits start to be reduced. You will qualify for the work allowance if:.

If you receive assistance with housing costs, your work allowance is currently £404 a month and if you don't, it is £673. The DWP pays Universal Credit based on your personal circumstances.

Therefore, if certain changes occur in your life, you will need to report them to the DWP as they might affect how much you can claim. Not all changes in circumstances will result in your Universal Credit being reduced - some may actually increase your payments.

If you fail to report the change immediately, your claim might be reduced or stopped. Providing incorrect information and deliberately failing to report changes constitutes benefit fraud.

Changes that Universal Credit expects you to report include: Overpayment by the DWP. If the DWP has overpaid you, the department will reclaim the money from your future payments.

If you do not inform the DWP about the overpayment, you may face prosecution for benefit fraud or have to pay a penalty. You can report an overpayment by signing into your Universal Credit account or calling the Universal Credit helpline.

You can request the DWP to waive the overpayment. This is known as "exercising their discretion not to recover an overpayment", but they are not obliged to agree to this.

To be eligible for Universal Credit payments, one must agree to a "claimant commitment". It's essentially an agreement consisting of various tasks you pledge to carry out in order to receive your payments.

It involves preparing for and actively seeking work unless you're already employed, and if you are, striving to boost your income. Failure to demonstrate job-hunting activities or convincing your Jobcentre adviser of your efforts could lead to sanctions, meaning a temporary decrease in your Universal Credit funds.

If sanctioned, you'll be informed via post or through a notification on your online Universal Credit account, explaining the reason:.

Sanctions differ depending on which "conditionality group" you fall into, as these categories set the required work-related actions for receiving full Universal Credit. Sanctions come in four severities and can last from a week up to 182 days.

Additionally, if you owe money to the DWP due to an advance payment, hardship payment, or budgeting advance, expect deductions from your future Universal Credit payouts since these sums are considered loans and expected to be repaid to the DWP.

An advance payment is a sum given to new claimants to assist them in covering their bills while they wait for their applications to be processed. A budgeting advance is a one-time payment for necessities such as home repairs or uniforms for a new job.

A hardship payment is provided to those who have been sanctioned and are finding it difficult to manage with their reduced Universal Credit payment. The repayment period for these payments depends on the amount borrowed.