Armed forces veterans say they have been financially “crippled” after being told to repay their universal credit payments with some having to return thousands of pounds.
The Department for Work and Pensions (DWP) contacted veterans who are in receipt of the benefit to tell them their military pensions were classed as unearned income – something that is considered when calculating UC payments.
This has resulted in some veterans who served in the armed forces, being asked to repay huge sums, with many concerned about where they will find the money to do this with some having received payments for more than a year.
Thousands could be affected. As of August 2025, there were 83,000 UC claimants who had served in the Armed Forces and 4,700 currently serving, according to official figures.
Shorts










