DWP Universal Credit claimants told to check their pay meets minimum wage rules

People claiming Universal Credit from the Department for Work and Pensions are being urged to check that any pay they receive from work meets current rules. The government is advising people on what level of National Minimum Wage they should be receiving and what to do if they discover they are being underpaid.

There are currently seven million people claiming Universal Credit in Great Britain, with 2.6 million of those working and the rest not in employment. This includes 208,692 claimants in Birmingham, where around 62,000 are currently in work, according to the latest figures.

Those who have jobs can receive Universal Credit to top up low wages or help them cover the costs of high rents and disabled children. The amount they get in their monthly Universal Credit payment is reduced by 55p for every £1 of earnings above any work allowances they may have before the deduction is applied.

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HMRC has confirmed that text messages are being sent out to employed Universal Credit claimants to ensure they are not on less than the minimum wage. It has assured people that the alerts are genuine and not a scam.

It said: "HMRC does send text messages to some of our customers. In the text message, we might include a link to GOV.UK information or to HMRC webchat. HMRC will never ask for personal or financial information when we send text messages.

"We advise you not to open any links or reply to a text message claiming to be from HMRC that offers you a tax refund in exchange for personal or financial details. To help fight phishing scams, you should send any suspicious text messages to 60599 (network charges apply) or email phishing@hmrc.gov.uk then delete them.

"From November 4, 2024, up to and including November 22, 2024, you may get a text message from HMRC if you're a worker and receive Universal Credit. The text message will advise you of your National Minimum Wage entitlement; to check your pay; and to report concerns to HMRC if you’ve been underpaid

"These messages do not ask for personal or financial information or include any links to websites."

Asking people to check they are being paid in accordance with the current National Minimum Wage comes ahead of changes due to take effect in April 2025. The main rate is to rise by 6.7 per cent to £12.21 an hour after the Low Pay Commission was asked to take the cost of living into account.

Chancellor Rachel Reeves announced in the Budget that the Government will gradually move to a single level for the minimum wage, which will mean a flat rate for everyone who is 18 and above.

The current rates and new rates from April 2025 are:

• Apprentice and Under-18: £6.40, rising to £7.55
• Aged 18-20: £8.60, rising to £10
• Aged 21 and over: £11.44, rising to £12.21

Ms Reeves described the move as a "significant step" towards delivering on Labour's manifesto promise to introduce a "genuine living wage for working people." The increase will mean an extra £1,400 a year for a full-time worker over 21 earning the main minimum rate, known as the National Living Wage, from April 2025. But it still falls short of the £12.60 per hour UK living wage calculated by the Living Wage Foundation.

HMRC also says it may contact Child Benefit recipients by text to confirm it has received or approved their claim, that they have successfully opted in or out of payments or that changes have been made to their account.

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