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DWP warning over 12 benefits that can cut your Universal Credit paymentsIt's important to be aware of the 'overlapping benefit' rules used by the Department for Work and PensionsNewsDavid

Bentley Content Writer (Money and Events)13:10, 29 May 2025Updated 14:05, 29 May 2025People newly joining the Universal Credit system are being urged to report any overlapping benefits that

may affect their claim and reduce what they receive A DWP warning has been issued about 12 benefits that can reduce the amount people receive in Universal Credit.

Thousands of people transferring to Universal Credit from old-style 'legacy benefits' such as Income Support and Employment and Support Allowance (ESA) are being sent online messages in

their accounts asking what other payments they receive.

‌ With this managed migration now being ramped up so that 83,000 households on ESA are being contacted every month and told to move to Universal Credit, BirminghamLive has seen several posts

on our Cost of Living Facebook group asking what these messages mean.

‌ It's all due to the overlapping benefits rule within the Department for Work and Pensions, which prevents people from having the financial advantage of two forms of state support that

serve a similar purpose.

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Turn2us points out: "The overlapping benefits rule means that sometimes you may qualify for two or more earnings replacement benefits, but you cannot get more than one benefit at the same

time."

In practice, people are able to receive Universal Credit alongside many other benefits. But you may not end up any better off due to this overlapping benefit rule.

In these cases, the equivalent monthly amount of the other benefit will be deducted from your Universal Credit. This applies when you get Universal Credit and any of the following benefits:

‌Armed Forces Pensions (but not Armed Forces Compensation Scheme or Armed Forces Independence Payment)Bereavement Allowance (including Widowed Parent's Allowance but not Bereavement Support

Payment)Carer's Allowance (but not the Carer's Allowance Supplement paid in Scotland)Carer Support Payment (only paid in Scotland)Incapacity BenefitIndustrial Injuries Disablement Benefit

(but Constant Attendance Allowance or Exceptional Severe Disablement Allowance is ignored)Maternity AllowanceNew Style Employment and Support Allowance (note that income-related ESA is being

phased out and totally replaced by UC)New Style Jobseeker's Allowance (note that income-based JSA is being phased out and totally replaced by UC)Severe Disablement AllowanceState

PensionWidow's Pension (including Widowed Mother's Allowance) The above benefits are based on weekly rates, whereas Universal Credit is paid per calendar month.

So, a monthly equivalent is worked out and deducted from your Universal Credit.

‌ For instance, Carer's Allowance is a weekly rate of £83.30, usually paid into accounts every four weeks as £333.20. When converted to the equivalent of a calendar month amount, the

Universal Credit deduction for Carer's Allowance is £360.97.

Universal Credit recipients can partially offset this deduction by adding Universal Credit's own Carer Element of £201 to their claim.

Although there is no financial gain to getting Carer's Allowance and Universal Credit together, it's important to be aware that there is the advantage of Carer's Allowance offering a higher

level of National Insurance credits towards your State Pension.

‌ Government guidance says that if you are on Universal Credit and getting one or more of the above benefits, you must tell the office you claim them from. They will then update their

records to show that Universal Credit is being claimed at the same time.

Other benefits do not have any effect on what you receive in Universal Credit. Those that are ignored include Personal Independence Payment, Disability Living Allowance and Child Benefit.

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