DWP benefit warning as top reasons why Universal Credit claims fail revealed

Over six million people in the UK claim Universal Credit and although millions of new claims are accepted each year thousands fail and there is a range of reasons why they are not accepted

Thousands of Universal Credit claims were closed last year before receiving a payment last year and the Department for Work and Pensions (DWP) has shared the reasons why.

DWP data published after a Freedom of Information (FOI) request by the Sun, revealed that between July 2023 and June 2024, a total of 896,000 Universal Credit claims were closed without a penny being paid. There are several reasons why the benefit claim is unsuccessful and these can range from failing to attend an interview and having insufficient evidence to support your claim.

Of the nearly 900,000, around 63,800 were closed because the claimant failed the habitual residence test. This test is used to stop someone who has a right to enter the UK from claiming social benefits immediately after their arrival. According to the charity Shelter, a period of one to three months usually indicates "habitual residence".

On top of this, almost 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.

When it comes to claiming, these documents are vital as they help decide how much Universal Credit you could be entitled to. This amount is dependent on your personal circumstances such as how much you earn each month, how many hours you work, and how many children you have. If you cannot provide these, then it will likely lead to your application failing.

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". When you claim Universal Credit, you have to sign a claimant commitment which is an official agreement on what you have to do to get your benefit payments. Your commitment usually includes looking for work or increasing your work hours, and attending meetings at the Job Centre. If you do not accept these terms, then your claim will be rejected.

When you start your Universal Credit claim, you usually need to attend a meeting at the Job Centre so the DWP can verify your identity. These interviews can also be held over the phone or face-to-face. If you're late, or miss, these interviews, you could see your claim closed and you will have to reapply again. However, if you do have a genuine reason why you couldn't attend a meeting this can be excused.

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.”

Top 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

(Between January and June 2024)