There are several reasons that benefit claimants might need to hand back financial help they have been given but other people might be missing out on money they are due to
Thousands of people could be left trying to find money after being ordered to repay benefits they have been incorrectly given. According to The Big Issue around 1.1 million people owe money to the Department of Work and Pensions (DWP)
However this is often only discovered after the money has been spent. And the mistake is frequently not made by the claimant but as a result of DWP errors.
There are a number of errors that can lead to overpayment. Some of these are mistakes by the claimant and others by the DWP.
Technical problems
Sometimes mistakes are made by the DWP or HMRC which means people are given too much money. If this happens you will need to repay anything you are not entitled to.
This can be receiving more than one payment by mistake or being given the wrong amount of money as a result of delays in processing or updating your details. If you have been overpaid the extra money will need to be paid back, no matter whose fault it is.
If the affected benefit is Universal Credit, Jobseeker’s Allowance, or Employment and Support Allowance, it is likely that any over payment will be recovered. Some other benefit over payments caused by a DWP error might be written off.
Failing to report a change in circumstances
According to the government rules you will have to repay money if you did not report a change in circumstances straight away. This could be if you moved home or stopped receiving a benefit which made you eligible for the money.
Human error
One problem can be because you got it wrong. If you reported an incorrect amount of income for you or your partner it can make a difference to how much you are entitled to.
If you have done this the DWP can tell you to repay it. There is no limit on how much you must pay back or how long the time period has been.
Providing false information
If you received the payment after having got your details wrong when you applied then you will have to repay the money. This could be something like giving the incorrect date of birth on your application.
Advances or interim payments
Some people can get an advance on their benefit, such as while they wait for their full application to be processed. However, once the full claim is finalised this money will be dealt with as an overpayment which must be paid back.
Hardship payments might also have to be paid. These are aimed at helping people facing benefit sanctions but must usually be paid back once the sanctions have ended.
When the claimant dies
Delays in notifying the DWP can sometimes lead to money continuing to be paid after someone has died. These are “direct payments after death” and usually will be repaid via the deceased’s bank account.
Child benefit
There are also times when Child Benefit can be overpaid – for example of one partner’s income rises above £60,000 some money might have to be repaid. If this goes over £80,000 it will all need to be repaid – although these are usually done through tax.
Other payments
If you have been paid too much from funds including Maternity Payment or Winter Fuel Payment and it is the fault of the government then they can’t reclaim the cash. However if it is the claimant’s error it can be reclaimed.
How to fight a decision
The government has set out ways to challenge a decision if you think it has been made in error. It says:
- Ask for mandatory reconsideration – ask for the benefits decision to be looked at again (mandatory reconsideration) You normally need to do this within one month of the date on your decision letter
- Appeal the decision to a tribunal -if you’re unhappy with the decision after mandatory reconsideration, you can appeal it to a tribunal
- Ask for the tribunal’s decision to be ‘set aside’ (cancelled) – if you disagree with the decision, you can ask for it to be set aside (cancelled). The decision letter from the tribunal will tell you how to do this
- Appeal the tribunal’s decision -if you think the decision was wrong for a legal reason, you can appeal to the Upper Tribunal
- Check if you can get legal aid -you may be eligible for legal aid to help you appeal to the Upper Tribunal. Check if you can get legal aid
What if you are entitled to more?
According to the government there are several ways of finding out if you are due to money you are not already claiming. It advises: “You can use an independent, free and anonymous benefits calculator to check what you could be entitled to.” It says this will give you an estimate of:
- the benefits you could get
- how much your benefit payments could be
- how your benefits will be affected if you start work or increase your hours
- how your benefits will be affected if your circumstances change – for example, if you have a child or move in with your partner
For other information on income-related benefits, contribution-based benefits, Universal Credit, Council Tax Reduction and Carer’s Allowance use:
You can also check with a local benefits adviser to find out what you could be entitled to. However you cannot use the calculators if you are under 18. They will not give accurate results if you’re:
