Fatwa ID: 05749

Answered by: Maulana Mubarak Patel

Question:

A person was unemployed for a period of time and claimed universal credit. Whilst on universal credit, he gained employment ‘off the books’, working below national minimum wage. The person continued to receive universal credit even though his total wage was above the threshold to qualify for universal credit. If he tries to leave universal credit by stating he is employed, it would cause issues as his work is below the minimum national wage.
Is it permissible for him to accept the money from DWP? If not, then how should he proceed? Also, any money he has already obtained in the case that it was unlawful, then is it permissible to give that to uni students who have student loan debts to pay off as a way of returning the money back to the state?

In the name of Allah, the Most Gracious, the Most Merciful

Answer:

In accordance with the rules of DWP and the Universal Credit, all of your income should be declared, regardless of how much you earn. As Muslims, we should be honest with our dealings. You should report all of your earnings to DWP as right now it is not permissible to accept the money from DWP.

The money should be given back to DWP. Once they have investigated your case, they will tell you how to proceed in regards to giving the money back.

References:

Ṣaḥīḥ al-Bukhārī 1973

Ṣaḥīḥ Muslim 1532

Only Allah knows best

Written by Maulana Mubarak Patel

Checked and approved by Mufti Mohammed Tosir Miah

Darul Ifta Birmingham