New dwp checks on universal credit claimants with more than £6,000 in account

ANYONE CLAIMING UNIVERSAL CREDIT WITH BETWEEN £6,000 AND £16,000 IN THEIR BANK WILL START TO GET REDUCED BENEFIT PAYMENTS UNDER LABOUR'S NEW PLANS 13:24, 02 Jun 2025 The Department for

Work and Pensions (DWP) could soon be allowed to check benefit claimants' bank accounts and reduce the amount of money they receive. Individuals with more than £6,000 in their bank

accounts have been cautioned that checks could conducted on their accounts if they are receiving Universal Credit. The DWP's benefit fraud crackdown plans have advanced to check the

accounts of people with savings worth between £6,000 and £16,000, Wales online reports. As part of the “biggest ever crackdown on fraud against the public purse,” claimants typically cannot

have more than £16,000 in savings or investments and new checks are being implemented to prevent system abuse. Previous parliamentary debates also proposed taking money directly from

fraudsters’ bank accounts and suspending driving licences. Liz Kendall, Secretary of State for Work and Pensions, previously said: "We are turning off the tap to criminals who cheat the

system and steal law-abiding taxpayers' money. Article continues below "This means greater consequences for fraudsters who cheat and evade the system, including as a last resort

in the most serious cases removing their driving licence. "Backed up by new and important safeguards including reporting mechanisms and independent oversight to ensure the powers are

used proportionately and safely." _JOIN THE MANCHESTER EVENING NEWS __WHATSAPP__ GROUP _HERE Government rules for Universal Credit eligibility specify that claimants, whether single or

living with a partner, must typically have no more than £16,000 in money, savings, and investments. If an individual has between £6,000 and £16,000, their Universal Credit payments will be

reduced. For individuals with savings exceeding £6,000, their payments will be incrementally reduced. For every £250 held between £6,000 and £16,000, payments will be cut by £4.35. An

additional £4.35 is deducted for any remaining sum that does not amount to a full £250. The figure of £4.35 is based on the DWP's assumption that every £250 in a person's bank

account can generate a monthly income of £4.35. Therefore, if someone has £6,500 in savings, £6,000 will be disregarded, and the remaining £500 will be considered as providing a monthly

income of £8.70. For those receiving Job Seekers Allowance or income-related ESA, £1 per week will be deducted from their benefits for every £250 (or part thereof) in savings above £6,000.

The same rule applies to income support and housing benefit recipients. Article continues below The Labour Party's Fraud, Error and Debt Bill is currently progressing through Parliament

and is expected to be enacted later this year. The bill received its first reading in the House of Lords in May and an amendment to it was rejected.