THOUSANDS of people on Universal Credit could be missing out on up to £5,483 a year, a charity has warned.
Claimants are not always getting the extra elements of Universal Credit (UC) they’re entitled to due to poor data-sharing within the Department for Work and Pension (DWP), according to Child Poverty Action Group (CPAG).
We’ve explained how to get a back payment below
If you get UC alongside carer’s allowance, for example, then you generally have a “carer element” added to your UC.
This is worth an extra £185.86 or £2,230.32 a year.
And those who get UC and have a child who qualifies for disability living allowance (DLA) are usually entitled to a UC “disabled child element”.
This is worth an extra £456.89 per month for the higher rate (£5,482.68 a year) or £146.31 per month for the lower rate (£1,755.72 a year).
However, poor data-sharing within the DWP has left thousands of claimants missing out on these extra elements, according to CPAG.
This is because claimants don’t necessarily know they’re entitled to the extra UC, and yet the DWP relies on them to notify it of their new entitlement.
As a result, parents of disabled children and carers are far too often underpaid.
CPAG says the department already has the information to ensure parents and carers automatically get higher amounts of UC when they become entitled to them.
However, because the information isn’t shared between different parts of the department, there isn’t a process for flagging when a claimant has a new entitlement to extra UC.
CPAG is also concerned that parents or carers who manage to get the extra element added later might still not receive the backdated payments to which they’re entitled.
Claimants are eligible for backpayments to the date at which they became entitled to child DLA or carer’s allowance.
Alison Garnham, chief executive of Child Poverty Action Group said: “Carers and parents of disabled children can ill-afford to be without the money they’re entitled to and yet poor data-sharing within the DWP means some go for years without support that’s rightfully theirs.
“The department needs to get much smarter about using information it already holds to get families their correct awards.
“It really isn’t good enough that families go without because the DWP’s data-sharing isn’t up to scratch.”
How does the issue play out in practice?
These issues have been highlighted in problematic messaging issued by Jobcentre agents to case studies CPAG has been working with.
For example, Sam (not her real name) is a working parent with a daughter, Rose, who has a developmental disorder.
Sam has been getting UC since 2020 and Rose was awarded DLA in 2021.
But when she got the DLA decision, Sam did not mention it to the DWP in her UC journal or at the Jobcentre.
She knows that both UC and DLA are DWP benefits but wrongly assumed that if her UC award needed to change, this would happen automatically.
But after learning this wasn’t the case after speaking to a benefits charity in 2023, she put a message in her UC journal asking to have the disabled child element added to her UC award.
In response to this request, the DWP directed her to “Report a change in circumstances” on her UC account instead, which she did.
At this point, the missing element should have been added to Sam’s UC as requested, and she should have been paid arrears going back to the start date of the DLA award.
Instead, Sam got a response saying that she would have the disabled child element added to her UC award from her next payment onwards. But, there was no mention of arrears or “back pay”.
Sam is now challenging this decision with help from her benefits adviser to ensure she gets the back pay she’s entitled to.
Single parent Tom found himself in a similar situation last year after being awarded the highest rate of the DLA care component for his nine-year-old disabled child in October 2018.
However, when Sam requested that the UC element be added to his award, he also cited the relevant legal provisions in the (Decisions and Appeals) Regulations 2013 to ensure he was entitled to back pay.
In July 2023, Tom received a decision letter – the disabled child element had been added to his UC award, effective from the start of his child’s DLA award, and he received the full £22,532 of arrears.
The Sun contacted the DWP for comment.
How do I report a change in circumstances?
You should always tell the DWP about any change, however small.
If you don’t, you may not get all the money you are entitled to.
Or, you may get more than you should and it will need to be paid back.
In some cases, you may even be fined for not reporting a change in circumstances or could end up in court.
You can report any change of circumstances by signing into your Universal Credit account online.
If you struggle to do this, you can always try the Universal Credit helpline on 0800 328 5644.
Remember, if you’re reporting that you’re now entitled to DLA for children or carer’s allowance you’re entitled to extra UC elements and are legally permitted to receive back pay to the date you first qualified.
Alternatively, charities like the Child Poverty Action Group Turn2Us and Citizens Advice can help guide you through the process.
You can phone Turn2Us on 0808 802 2000 or Citizens Advice on 0808 223 1133.
You can use benefits calculators to determine how much a change of circumstance, such as claiming DLA or carer’s allowance, will impact your Universal Credit award.