DWP claimants may have to pay back an amount if they are overpaid
The DWP has issued fresh guidance on which claimants will need to repay portions of their benefit awards. The update came after a question in Parliament about overpayments caused by “official error”. Government guidance warns claimants who suspect they’re receiving too much in benefits to “tell the office dealing with your benefit straight away”.
The advice includes this warning: “You may have to pay back the benefit if you’ve been overpaid.” Claimants must also notify authorities of any changes to their circumstances that might impact their entitlement.
Further guidance 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.”
Liberal Democrat MP Zöe Franklin, who represents the constituency of Guildford, challenged the Government in Parliament over cases where vulnerable people face demands for repayment despite not being at fault. She specifically questioned what measures the DWP has in place to protect claimants “with a serious or terminal diagnosis” from having to repay benefit overpayments that occurred “due to official error”.
Her concerns particularly focused on situations 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 to her inquiry.
Affordable repayment plans
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.”
Addressing what help is on offer for those facing terminal illness, Mr Western explained: “People with a serious or terminal diagnosis can request that DWP cease recovery of their overpayment. This is a waiver request.”
He also provided a link to benefit overpayment recovery guidance with further information on this matter. The guidance makes clear: “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 told the Lib Dem MP that claimants can ask for a mandatory reconsideration and can challenge a decision regarding their overpayments.
Mandatory reconsideration
You can ask for 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
