Universal Credit warning as some travels put payments at risk | Personal Finance | Finance

Benefit claimants of Personal Independence Payments (PIP) and Universal Credit (UC) may have inadvertently jeopardised their financial aid this summer, due to unfamiliarity with a new reporting system implemented by the Department for Work and Pensions (DWP).

Claimants might not be aware that taking holidays or spending time outside the UK can significantly affect certain benefits, especially UC and PIP.

Claimants of UC are required to report any trips outside Britain directly to DWP, this includes any past, present or future visits beyond the UK’s borders.

UC recipients must notify DWP of any overseas travel planned within the next 30 days or if they have taken a trip since their claim started, including the purpose, dates, and destinations involved in their trip.

Universal Credit rules allow for overseas travel lasting up to one month and stipulate that claimants should reside in the UK for at least a month between trips.

Should a close relative pass away while they are abroad, an additional month’s absence could be added to their stay if it’s unreasonable for them to return to the UK sooner.

Moreover, a six months leeway is granted for those travelling for medical reasons, or for them or their child to recover from an illness.

Nonetheless, any failure to match these criteria could result in a full suspension of UC in the next pay cycle.

The department has clarified that while most cases won’t reach such an extreme that benefits are terminated, meaning you won’t have to reapply, they cautioned: “You need to report changes as soon as they happen.

“Any delay may mean you receive too much money and will have to make a repayment. You could be taken to court or have to pay a penalty if you give wrong information or do not report a change in your circumstances.”

For those on PIP, Attendance Allowance, or Disability Living Allowance, it’s mandatory to inform the DWP if they are away for four weeks or more. Yet typically, beneficiaries can continue to collect payments for up to 13 weeks when travelling outside the country.

This period doubles should the travel be for medical treatment.