Universal Credit scams

The main way a Universal Credit scam works is someone offering to apply for a Universal Credit Advance Payment on your behalf and taking some of the money as a fee, or even diverting the whole payment to their own account.

They’ll often tempt you by suggesting this is free money from the government.

A Universal Credit Advance Payment can be up to a full month’s Universal Credit payment. Scammers can take a large chunk as a fee – 40% or more.

There are many ways a Universal Credit scammer might approach you.

Some people have reported being approached at home, or in person by smartly dressed people claiming to be from Jobcentre Plus.

Others have been contacted online through social media groups, direct messages and adverts.

People have also been approached online by someone claiming to have a friend who works at a Jobcentre, who’ll be able to process or approve the application on your behalf.

Some of these scammers have professional-looking social media profiles and websites, with testimonials and government logos.

The DWP also has Fraud and Error Prevention Service centresOpens in a new window who may contact you to verify your claim.  

If you are unsure whether the person claiming to be a DWP official is really from the DWP or not, ask them to put a short message in your online journal.

If you think someone has used your personal details to make a Universal Credit claim without your permission, it's important to act quickly. You might notice unexpected letters, emails or text messages from the DWP, changes to a Universal Credit account you didn't make, or find out about a claim you don't recognise. 

What to do if you think your identity has been used: 

• Contact the DWP straight away using the official contact details on GOV.UK or through your Universal Credit journal if you already have an account.  
• Secure your Universal Credit account by changing your password immediately if you think someone else  might have accessed it.  
• Contact your bank if money has left your account  
• Check your credit report for any unexpected activity that could indicate identity fraud.  
• Report the fraud to Report FraudOpens in a new window (formerly known as Action Fraud) to get extra support.

If you're reporting fraud, it can help to keep a record of: 

• the date and time you noticed the problem  
• copies or screenshots of emails, text messages or online messages  
• any letters you've received  
• reference numbers from the DWP, your bank or Report Fraud  
• notes of any phone calls, including who you spoke to.  

Keeping this information together can make it easier if you need to report the fraud to more than one organisation or if you're asked for further information later. 

If you've lost money or shared personal information with a scammer, report it as soon as possible. 

Scammers sometimes pretend to be from DWP Debt Management to try to convince you that you owe money and need to repay it immediately. They may contact you by phone, text, email or letter and claim they'll take further action if you don't pay straight away. 

A genuine DWP Debt Management team may contact you if you owe money to the DWP, but they won't pressure you into making an immediate payment or ask you to transfer money to a personal bank account. 

If you're unsure whether a repayment request is genuine: 

• don't make a payment until you've verified it's genuine  
• use the official DWP contact details on GOV.UK to check whether you owe any money  
• don't use the phone number or links included in a suspicious message  
• never share passwords, PINs or security codes with anyone who contacts you unexpectedly. 

There’s no need to pay someone to apply for an Advance Payment or Universal Credit on your behalf. And there are two other serious problems if you let them do this.

First, you will probably have to repay the entire advance back to the Department for Work and Pensions (DWP). This includes the money the scammer charged you as a fee.

This comes out of your future Universal Credit payments, which could leave you short of money.

Also, if you do need an Advance Payment, you’re losing some of the money you could be getting by paying someone to apply for you.

Second, it can also create serious problems if you’re not yet claiming Universal Credit and you could end up even worse off than you intended.

You can only get an Advance Payment if you’re waiting for your first Universal Credit payment. So the way you’ll be targeted might be slightly different.

If you’ve already applied for Universal Credit, but are still waiting for your first payment, scammers will offer to apply for an Advance Payment on your behalf. They’ll take some of the money as a fee or redirect your payment to their own account.

They’ll ask you for your Universal Credit login details. They’ll also claim to have some kind of inside access, such as a friend working at the Jobcentre Plus, who can approve these payments quickly.

If you’re already claiming benefits, but not Universal Credit, scammers will first offer to make a claim for Universal Credit on your behalf. Or they might claim they can apply for a loan or grant – but instead make a Universal Credit application for you.

To do this, scammers will ask for personal information so they can make the claim online. For example, they might ask your proof of identity, bank account details and National Insurance number.

Some people can’t claim Universal Credit. For example, most full-time students, people with certain types of immigration status and people with more than £16,000 in savings.

However, these people are also being targeted by Universal Credit scammers.

Scammers are likely to make this sound as if it’s free money. They’ll offer to make a claim for Universal Credit on your behalf when you might not qualify for it.

If you do need to make a claim for Universal Credit, you can ask your work coach if you need to make a claim for an Advance Payment while you’re waiting for your first Universal Credit payment. They’ll will tell you how to do this.

You’ll also be asked to go into your local jobcentre with proof of identity before the payment will be made.

If you do need help applying for Universal Credit or an Advance Payment, you can contact the Citizens Advice Help to Claim Service.

The service is free and confidential, and you can get help in your local area. It’s available to everyone and is useful to use if you’re not sure whether you should claim Universal Credit.

If you’ve been targeted, even if you haven’t become a victim, you can call Report Fraud on 0300 123 2040Opens in a new window. Or report it online on Report FraudOpens in a new window

It’s also important to report it to your Jobcentre Plus as soon as possible too.

If you’ve been targeted or become a victim after you’ve been contacted online, use the reporting tool on Twitter, Facebook, Instagram or Snapchat. Your report might help stop someone else being scammed.