Particle.news
Download on the App Store

DWP Acknowledges Martin Lewis Warning Over Universal Credit Bank-Switching Barriers

Lewis says up to 8.3 million claimants face in-person verification that undermines a government-backed switching service.

Overview

  • The Department for Work and Pensions said it has received Martin Lewis’s letter and will respond, stressing the need to handle bank details securely to protect claimants.
  • Lewis argues Universal Credit processes force many to attend Jobcentre appointments to verify new accounts, creating costs, lost pay and delays that deter switching.
  • Digital banking is a sticking point, with paperless statements and numberless cards reportedly not accepted by some verification procedures used for Universal Credit.
  • MoneySavingExpert proposes fixes including remote verification, flexible scheduling, home visits for disabled claimants, acceptance of digital evidence and safeguards against payment delays.
  • Lewis copied the letter to UK Finance, the Building Societies Association and the Current Account Switch Service, and no operational changes have been announced to date.