Changing your name, moving house of having a new addition to your family are just some of things you need to tell the Department of Work and Pensions (DWP)about to avoid a £50 fine if you claim Universal Credit or other benefits.
Millions of people claim benefits if they are unemployed or on a low income or unable to work for health reasons, but since October 2012, the DWP have had the power to impose a fixed rate civil penalty on claimants who have been overpaid. Government advice warns anyone could be fined £50 if they fail to let the authorities know of a change in circumstances.
If you do not report a change you might be paid too much - called an overpayment - and you will have to pay the money back, on top of the potential £50 penalty. In the worst case scenario, if the Government believes you deliberately did not report changes, you could be prosecuted for benefit fraud, which could lead to your benefits being stopped altogether, and/or a penalty of up to £5,000. These rules on civil penalties only apply to benefits and not to Tax Credits.
