DWP issues new Universal Credit warning after major rule change on claims

DWP claimants have been warned they face Universal Credit rule changes following a tribunal verdict. The Department for Work and Pensions has issued new guidance to staff on deciding claims for the benefit.

The changes hinge on whether a person from Europe can move to the UK, enter into a relationship with a British resident, live on their benefits, and then go onto a joint claim for Universal Credit.

The current rules say that anyone claiming Universal Credit must show they have a 'right to reside' in the UK. If they are from the European Economic Area - all the EU countries plus Iceland, Norway and Liechtenstein - this typically means they must already be working here. But a new case has challenged this and means that living with someone and sharing their benefits could qualify as a right of residence.

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The changes were triggered by a legal case relating to a Belgian national who came to the UK in May 2017 and married a British woman just a month later in June 2017. The man has never worked in the UK.

After the marriage, he and his wife lived off her benefits. She claimed ESA (Employment and Support Allowance), Personal Independence Payment, Child Tax Credit, Child Benefit and Housing Benefit. He was also able to claim Carer's Allowance for looking after his wife. But the amount of ESA paid out to the woman dropped because of her husband being in the household and also because he was able to claim Carer's Allowance.

The couple then moved to a new local authority area, where the change in circumstances meant the woman was required to move on to Universal Credit instead. The husband started a joint claim for them to both receive Universal Credit but he was found to be ineligible because he did not have the UK residence rights needed for Universal Credit.

He appealed and, eventually, an Upper Tribunal found that the man did have a right to reside in the UK as a self-sufficient person. This was because he had shared his partner's previous legacy benefits - which had been paid to her at the rate for a couple - and so was entitled to be on a joint claim for Universal Credit.

The DWP is taking the case to the Court of Appeal but in the meantime has issued advice to benefits staff making decisions on other Universal Credit claims by people moving from older benefits.

The legacy benefits affected can be paid at a couple's rate with higher amounts and have no rules for residence rights. These are income-related ESA, income-based Jobseeker's Allowance, Income Support, Housing Benefit, Working Tax Credit and Child Tax Credit.

With the case now heading to the Court of Appeal, the usual procedure would be to stop any decisions on similar claims until the outcome of that hearing. But this would mean UK claimants being denied Universal Credit in the meantime.

DWP staff have been told that the case does not affect the rights of UK nationals to receive Universal Credit as long as they satisfy all other criteria. But if the claimant has a partner from the EEA (European Economic Area), officials must look at alternative factors - meaning anything other than a previous shared legacy benefits claim - to decide if the person is allowed to receive Universal Credit.

If no other right to residence is found, the European spouse won't be eligible for Universal Credit but will told their claim will be reviewed after the Court of Appeal has made its decision.

If the relationship has ended and the European individual is now making a single claim for Universal Credit, cases will be referred to the DWP's Decision Making and Appeals (DMA) office, based in Leeds.

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