A person receiving Universal Credit revealed that they were instructed to furnish nine years’ worth of bank statements for a benefits evaluation initiated by the Department for Work and Pensions (DWP).
The DWP has mandated the submission of all statements from the individual since their savings exceeded the £6,000 threshold. Once savings surpass £6,000, the Universal Credit payments are decreased by £4.35 monthly for every £250 of savings, as reported by Birmingham Live.
Although the claimant has been on Universal Credit for just six months, they expressed bewilderment regarding the demand on Reddit. They questioned the relevance of providing information dating back nearly nine years, especially since their online banking records only extend seven years, necessitating the laborious task of obtaining and scanning paper copies for submission.
The individual sought clarification from the DWP but faced repeated requests for the same documentation despite explaining the impracticality of the situation. While they expressed willingness to cooperate, they found the request excessive and intrusive.
In response to the situation, one Reddit user advised challenging the request based on the accurate reporting of capital during the initial UC claim, highlighting the legal requirement for banks to retain statements for seven years. Another user questioned the necessity of statements predating the claim submission date.
However, a forum member countered that the DWP could request older statements to uncover potential fund transfers prior to the UC claim to conceal assets. The claimant reaffirmed their initial savings declaration in the Reddit thread, emphasizing compliance with the guidelines.
Moreover, discussions touched on the concept of deprivation of capital, where individuals might strategically spend or transfer funds to meet eligibility criteria for Universal Credit. GOV.UK guidance clarified that deliberate reduction or transfer of assets to manipulate Universal Credit entitlement could lead to adjustments based on ‘notional capital’.
During the assessment process, the DWP considers all financial assets held by the claimant and their partner in determining Universal Credit eligibility and award amounts. The total value of assets, including money, savings, and investments, influences qualification for Universal Credit.
Debts are not factored into the evaluation of total assets by the DWP, which scrutinizes all UK and overseas financial holdings.