A person receiving Universal Credit revealed that they were requested by the Department for Work and Pensions (DWP) to provide nine years’ worth of bank statements for a benefits assessment. The DWP asked for all bank statements since the individual’s savings exceeded £6,000. Once savings surpass £6,000, Universal Credit payments are reduced by £4.35 per month for every £250 of savings.
Upon reaching £16,000 in savings, Universal Credit entitlement stops until savings fall below that threshold, as reported by Birmingham Live. The claimant, who has been on Universal Credit for six months, expressed confusion over the requirement on Reddit, stating that the request dated back almost nine years, beyond the online banking records available from their bank.
The individual questioned the necessity and relevance of providing such extensive information, especially considering the inconvenience of obtaining paper copies of older statements. Despite cooperating with previous requests, the claimant found this demand intrusive and excessive.
In response to the situation, a Reddit user suggested challenging the request based on accurate initial capital reporting and legal requirements for banks to retain statements for seven years. Another user inquired if the DWP could only request statements from the claim start date, to which a forum member explained that further inquiries might be made to prevent intentional asset concealment before claiming Universal Credit.
The claimant clarified that they had accurately declared their savings exceeding £6,000 at the start of their Universal Credit claim. Another user emphasized the reasonableness of the DWP’s request for additional data to ensure no deliberate asset reduction occurred to meet eligibility criteria.
Adjusting financial assets to meet Universal Credit criteria, known as deprivation of capital, is scrutinized by the DWP. Regulations on GOV.UK outline that intentional reduction or transfer of assets to secure or increase Universal Credit eligibility may result in adjustments based on “notional capital,” assuming the claimant still possesses the assets.
During Universal Credit assessments, the DWP evaluates an individual’s and their partner’s total financial assets, including money, savings, and investments, to determine eligibility and award amounts. The value of all assets, both in the UK and overseas, plays a crucial role in the qualification process, irrespective of any debts owed.
It is important to note that the DWP does not consider personal debt when assessing an individual’s financial standing for Universal Credit purposes.