The Department for Work and Pensions (DWP) has recently been in the spotlight due to reports alleging the closure of 340,000 Universal Credit claims, leaving thousands of claimants without any financial support. This issue has brought considerable concern and confusion among claimants and advisers alike. This article will thoroughly explain what is happening, why some claims are being closed, its impact, and what steps claimants can take to protect their rights and finances.
DWP Shuts Down 340,000 Universal Credit Claims
| Aspect | Data & Information |
|---|---|
| Number of people on Universal Credit (June 2025) | 7.9 million |
| Households on Universal Credit (March 2025) | 6.4 million |
| Weekly average Universal Credit claims (May 2025) | 52,000 new claims, 44,000 starts |
| Universal Credit payment timeliness (Feb 2025) | 86% received full payment on time |
| DWP prevented over £1 billion in incorrect payments | Active claim reviews and anti-fraud measures |
The closure of Universal Credit claims can seriously affect thousands of vulnerable individuals and families. While the DWP’s anti-fraud measures help protect the integrity of the system, it is crucial for claimants to stay informed, respond promptly to requirements, and seek professional advice when needed. Understanding the reasons behind claim closures and how to challenge them can prevent unnecessary hardship.
Ensuring clear communication, providing required documents timely, and knowing the rights to review and appeal are vital steps for anyone on Universal Credit. By being proactive and informed, claimants can protect their financial support during challenging times.
For official statistics on Universal Credit and updates, visit DWP Universal Credit statistics.
Understanding Universal Credit and Its Importance
Universal Credit (UC) is a payment to help with living costs for people who are out of work or on a low income. It is one of the largest welfare support programs in the UK and serves millions of households. According to the latest data, as of June 2025, there are about 7.9 million people on Universal Credit, highlighting its critical role in social security.
Universal Credit combines six benefits into one payment, which includes support for housing costs, children, and disabled people. Claimants must agree to certain commitments, such as looking for work or training, to keep receiving payments.
Why Are Claims Being Closed?
Reports that 340,000 claims were shut down suggest a large-scale action by the DWP. While there is no official confirmation of this exact figure being closed at once, the DWP has intensified its efforts to review claims to prevent fraud and incorrect payments. Some key reasons for claim closures include:
- Failure to provide required identity verification or other documentation.
- Not accepting or complying with the claimant commitment, which is an agreement on work-related activities.
- DWP not receiving necessary information in time or identifying discrepancies in claims.
- Migration from legacy benefits to Universal Credit, where some households decide not to claim UC, causing closure of previous claims.
The DWP has appointed thousands of staff for Targeted Case Reviews to ensure payments are accurate and to protect public money, blocking over £1 billion in incorrect payments in 2025.
The Impact on Claimants
When a Universal Credit claim is closed, it means payments immediately stop. This can be devastating for those reliant on this income for essentials like rent and food. Thousands may be left with zero income suddenly, leading to financial hardship, arrears, and stress. For example, if housing support stops unexpectedly, tenants risk eviction, creating a domino effect of problems.
It is important to note that claimants can challenge claim closures. They may request a mandatory reconsideration or appeal the decision if they believe their claim was wrongly closed. Many welfare advisers recommend seeking advice as early as possible.
What Claimants Should Do: A Step-by-Step Guide
If a claimant receives a notice that their Universal Credit claim may be closed or has already been closed, they should follow these steps:
Step 1: Understand the Reason for Closure
- Carefully read any correspondence from the DWP explaining why the claim is closing.
- Common reasons include missing documentation or failure to agree to claimant commitments.
Step 2: Gather Evidence
- Collect all relevant documents such as proof of ID, bank statements, or medical evidence.
- Document all communications with the DWP, including phone calls and letters.
Step 3: Contact the DWP or an Adviser
- Contact the Universal Credit helpline for clarification and to see if the situation can be resolved.
- Reach out to a welfare rights adviser or a citizens advice bureau for expert guidance.
Step 4: Request a Mandatory Reconsideration
- If the claimant believes the closure was incorrect, they can ask for a reconsideration within one month of the decision.
- This is the first official step to challenge the DWP’s decision.
Step 5: Appeal if Necessary
- If the reconsideration upholds the closure, the claimant can appeal to a tribunal.
- An appeal should ideally be supported by legal or welfare advice.
Practical Tips to Avoid Claim Closure
- Always respond promptly to requests for information from the DWP.
- Keep your personal details, income, and work status updated in your Universal Credit account.
- Accept and adhere to claimant commitments conscientiously.
- Use reminders for deadlines on submitting evidence or responding to DWP notices.
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FAQs About DWP Shuts Down 340,000 Universal Credit Claims
Q1: Can Universal Credit claims be reopened once closed?
Yes, claimants can reapply for Universal Credit at any time. However, there may be delays before payments restart.
Q2: How long does it take to get a decision after applying for Universal Credit?
Typically, initial claims are decided within five weeks, but delays can happen if more verification is needed.
Q3: What happens if I miss a Universal Credit appointment?
Missing appointments without good reason can lead to sanctions, including reduced payments or claim closure.
Q4: Is Universal Credit available to everyone?
Universal Credit is means-tested and available to people on low income or out of work, subject to eligibility conditions.
Q5: Where can I get help with my Universal Credit claim?
Citizens Advice, welfare rights organizations, and local councils provide free support and advice for claimants.
