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DWP update over who will have to pay back benefit overpayments

Concerns were raised about ‘official errors’ leading to benefit overpayments

A couple check their finances

The DWP has clarified who may have to pay back their benefit payments (Image: Getty)

The DWP has shared an update about who will be required to pay back part of their benefit claim. The issue came to light after a question in Parliament about benefit overpayments due to “official error”.

Guidance on the Government website advises that if a claimant thinks they are being overpaid, they should “tell the office dealing with your benefit straight away”. Claimants are warned: “You may have to pay back the benefit if you’ve been overpaid.”

You should also tell the relevant office if your circumstances change, as this could affect your entitlement. Another information page on the gov.uk website explains: “If you do not report a change or a mistake, you might be paid too much. If you are, you might have to pay some of the money back. You might also have to pay a £50 penalty.”

Overpayments due to ‘official error’

Liberal Democrat MP Zöe Franklin, who represents Guildford, raised concerns in Parliament about people who are mistakenly overpaid benefit through no fault of their own. She asked in a written question what the DWP is doing to ensure claimants “with a serious or terminal diagnosis” do not have to repay benefit overpayments that came about “due to official error”.

She wanted to know especially about cases where “the claimant notified the department promptly that they believed they were receiving benefits to which they were not entitled”. DWP minister Andrew Western provided a response.

He said: “All DWP colleagues are trained to support our most vulnerable customers and have access to a wide range of guidance to support them. DWP will always strive to set affordable and sustainable repayment plans and encourages customers to make contact if they are unable to afford the proposed repayment rate.”

Zöe Franklin speaking in Parliament

Zöe Franklin asked a question about benefit overpayments (Image: Parliament TV)

Turning to what support is available for those with a terminal health condition, Mr Western said: “People with a serious or terminal diagnosis can request that DWP cease recovery of their overpayment. This is a waiver request.”

He also shared a link to some benefit overpayment recovery guidance with more details about this. The advice states: “Waivers are only granted in exceptional circumstances and there would need to be very specific and compelling grounds to do so.

“A request for waiver should normally be made in writing. This may result in all, or part of the debt being written off.” Mr Western also said in his response to the Lib Dem MP that claimants can request a mandatory reconsideration and can appeal a decision about their overpayents.

You can request mandatory reconsideration if you disagree with a decision about your benefits. DWP guidance states that you can request this for decisions about any of these benefits:

  • Attendance Allowance
  • Bereavement Allowance
  • Carer’s Allowance
  • Carer’s Credit
  • Child maintenance (also known as ‘child support’)
  • Compensation Recovery Scheme (including NHS recovery claims)
  • Diffuse Mesothelioma Payment Scheme
  • Disability Living Allowance (DLA)
  • Employment and Support Allowance (ESA)
  • Funeral Expenses Payment
  • Income Support
  • Industrial Injuries Disablement Benefit
  • Jobseeker’s Allowance (JSA)
  • Maternity Allowance
  • National Insurance credits
  • Pension Credit
  • Personal Independence Payment (PIP)
  • Sure Start Maternity Grant
  • Universal Credit (including advance payments)
  • Winter Fuel Payment

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