If you receive a benefits payment from the DWP and see this code in your bank statement, it’s worth looking into
Benefit recipients should keep an eye out for a specific code from the Department for Work and Pensions (DWP) on their bank statements, as it could indicate they’re due a refund. If the DWP issues a refund, it typically shows up on a bank statement with the sum followed by ‘DWP RFD’.
There are several reasons why you might receive a refund from the DWP, including instances where you’ve been underpaid. Underpayments can occur for various reasons, resulting in you not receiving the full amount of benefits you’re entitled to. Additionally, some individuals may be due a refund if they’ve previously received a hardship payment.
Hardship payments are generally awarded when you have been sanctioned – meaning your benefit payments have been cut – and you are finding it tough to meet basic needs. These payments are essentially loans that must eventually be repaid.
However, some people who received a hardship payment between January 1, 2014 and January 11, 2021, might be eligible for a refund if they requested a reassessment of their payments from the DWP and were either turned down or overlooked. Bear in mind, you will need to demonstrate to the DWP that you were unable to repay the hardship payment or that it significantly affected the health or wellbeing of you or your family.
Supporting evidence for this claim could encompass bank statements, doctor’s notes, living costs and income during the period you received the hardship payment. If you reckon you’re due a refund, make sure to submit your application form by May 4, 2025.
The DWP will touch base with you within six weeks of getting your application to confirm its receipt, followed by an up to 13-week wait for a decision.
Hardship payments are typically around 60 per cent of the amount you were penalised by the DWP in the preceding month. To qualify for a hardship payment, you must have pocketed 100 per cent of your Universal Credit standard allowance, or at least half if you are part of a couple.
Eligibility extends to those aged 18 and over who have been sanctioned, or those aged 16 and over whose payment has been slashed due to fraud, and are grappling to cover basic needs. These essentials encompass rent or mortgage, energy bills, food, and hygiene products. You’ll need to demonstrate that you’ve sought other financial support avenues, like assistance from friends or family, and have trimmed all non-essential expenses.
Moreover, you must have fulfilled all your work-related obligations in the past week. The current standard allowance for Universal Credit stands at £311.68 per month for single individuals under 25, or £393.45 per month for those over 25 and single.
For couples where both individuals are under 25, the standard allowance is £489.23 per month, or £617.60 per month if one or both members are 25 and over.
