Monday, December 23, 2024

Gambling could affect your benefits payments, warns the DWP

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You could see payments cut or even stopped

A man gambling on his phone

Gambling winnings could jeopardise your benefit payments as they’re counted towards capital, which might lead to a reduction or cessation of your benefits. The Department for Work and Pensions (DWP) clarifies that while gambling winnings aren’t considered earnings, they do contribute to your capital.

If you’re lucky enough to win and your total savings exceed £6,000, you could find your Universal Credit slashed or halted, BirminghamLive has reported.




A spokesperson for the DWP explained: “Winnings obtained from gambling activity do not meet the definition of earnings within Universal Credit Regulation 52 and are not taken into account as an unearned income. Any profit made from gambling activity will only be considered within Universal Credit as part of a person’s capital.”

“It is the customer’s responsibility to advise DWP of a change in their circumstances that would affect their benefit and for means-tested benefits, this includes receiving gambling winnings which increase the total capital held and impact their award.”

Moreover, HMRC could take a chunk of your winnings as interest on them is taxable. They deduct tax and share data with the DWP to combat fraud.

The Department for Work and Pensions (DWP) has the authority to scrutinise bank transactions, including those related to online betting websites. Matched betting, a practice where individuals utilise free bets from bookmakers to secure a profit, could be considered as capital by the DWP.

However, there have been instances where regular amounts have been classified as monthly income, subsequently reducing benefit payments.

The DWP may also request statements from other platforms such as PayPal, where money can be held.

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