Make sure Universal Credit claimants don't get caught out by the system of Annual Verification. And that the DWP apply the rules correctly.
Certain UC claimants have to re-verify their claim every 12 months - if they fail to do so then their UC claim is closed down.
If their UC award is terminated due to failure to comply, then even if a new claim is successfully made the claimant may have lost out on:
- SDP Transitional Protection Payment - as entitled ends when the award of UC ends.
- Transitional Element - which applies to some claimants manage migrated onto UC under the pilot running in Harrogate - as entitlement ends when the award of UC ends.
Who is affected?
Annual Verification is generally for those claimants who have to look for work - and who have had to do so for a continuous 12 month period. This includes couples where just one of them fits this description.
Any claimant required to complete annual verification needs to comply within set time limits to ensure their UC award isn't terminated. But they should also make sure that the DWP don't terminate their claim early ie by not applying these time limits correctly.
What’s the process?
The claimant is sent a to-do informing them that they need to confirm their circumstances. If any of the claim details are no longer correct, it will ask the claimant to report a change in circumstances. This needs to be completed within 14 days of the to-do.
If the claimant fails to confirm their circumstances, on day 15 the claim will be suspended and the claimant then has a calendar month to provide the information or the claim will be terminated.
Once terminated the claimant could claim again and be put back on the same monthly assessment period, this will be classed as a break in their claim and will end any transitional protection – e.g. SDP compensation, LCW transitional element.
What if the claimant has had a change in circumstances that they've failed to report?
If there has been an undeclared change, that results in an overpayment, the DWP will raise the overpayment and consider whether a penalty for failure to notify a change is appropriate. And the overpayment will be recovered by making deductions from the claimant's future UC award (where possible).
If there is an undeclared beneficial change ie one that meant the claimant's UC award should have increased, the DWP will apply that change from the Monthly Assessment Period that the verification is completed.
The aim of this verification is to reduce any fraud and/or error in the system.