Martin Lewis urges DWP to make major change for 8 million benefit claimants

One claimant said the issue was a ‘nightmare’

Money expert Martin Lewis has urged the Department for Work and Pensions (DWP) to investigate and fix an issue affecting up to 8.3 million universal credit claimants.

Many of these individuals are “effectively excluded from switching bank accounts” due to the “bureaucratic process” of claiming universal credit, Mr Lewis said in a letter to work and pensions secretary Pat McFadden.

He writes: “This is bad for competition, bad for consumers and bad for the economy. I would ask you to swiftly investigate and fix this.”

The issue also means that claimants are held back from banking deals, incentives and accounts that could improve their financial situation, the money expert adds, with a “range of issues” to blame.

Martin Lewis says up to 8.3 million benefit claimants are ‘effectively excluded from switching bank accounts’ (This Morning/ITV)

This includes a problem faced by many that switching banks whilst claiming universal credit requires an in-person appointment at a Jobcentre.

“This runs counter to the whole idea of simple one-click switching,” Mr Lewis claims, adding: “The bureaucratic process of UC seems to, without cause, pervert the ease of the process, and add barriers that many people, especially those who work and are on UC, tell me simply make it not worth the time.”

He points to several universal credit claimants have got in touch with him about the issue after he put out a call on his social media channels. One told him that trying to switch banks while claiming the benefit was a “nightmare”.

They said: “I ended up writing to my MP. Loads of security checks which is fine, but then insisted I had to take new bank card into the office, so had to take unpaid time off work to do that. Absolute joke, when I just had to put new details in for Child Benefit.”

Another wrote: “Changed banks with PIP [Personal Independent Payment] over the phone, simple. With UC, even though I can barely walk, I had to attend Jobcentre for an interview and take all my ID and bank card. Cost me £40 in taxis just to sort it and my anxiety was through the roof. Won't be changing banks again.”

Martin Lewis wrote to work and pensions secretary Pat McFadden (pictured) (PA)

Mr Lewis has offered a range of solutions that Mr McFadden could consider, including making remote and verification available to those on universal credit. This would mean claimants are able to submit evidence online if they have switched bank account.

The money expert also says the department should offer flexible appointment times if face-to-face verification remains necessary, and offer home visits for disabled claimants. This would come alongside accepting digital banks (therefore not relying on physical cards and printed statements) and ensuring that payments are not delayed when claimants switch banks.

A DWP spokesperson said: “We thank MSE for their letter and will respond.

“DWP are committed to ensuring people receive the support they're entitled to, while creating a welfare system that is fair to the taxpayer.

“Personal information such as bank details must be treated securely to ensure payments reach the right person and they are protected from exploitation or impersonation.”