The Department for Work and Pensions has shared advice for those who are concerned about benefit overpayments – and who may have to pay back part of their claim
The DWP has issued fresh guidance regarding which claimants will need to repay portions of their benefit awards following concerns raised about overpayments caused by “official error”.
Government guidance states that if recipients suspect they’re receiving excessive payments, they must “tell the office dealing with your benefit straight away”, with officials cautioning: “You may have to pay back the benefit if you’ve been overpaid.”
Recipients must also notify the appropriate department when their circumstances alter, as changes could impact their eligibility.
Additional information on the gov.uk portal warns: “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 stemming from ‘official error’
Liberal Democrat MP Zöe Franklin, representing Guildford, voiced parliamentary concerns about individuals mistakenly overpaid through no personal wrongdoing, reports the Express.
In a written parliamentary question, she enquired what measures the DWP was implementing to protect claimants “with a serious or terminal diagnosis” from having to reimburse benefit overpayments arising “due to official error”.
She particularly highlighted 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 delivered a formal response. He explained: “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 assistance exists for those facing terminal illness, Mr Western revealed: “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 containing 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 informed the Liberal Democrat MP that claimants have the right to seek a mandatory reconsideration and can challenge decisions regarding their overpayments.
Those who dispute benefit decisions can seek mandatory reconsideration, with DWP guidance confirming this option applies to decisions concerning 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
