DWP issues new update for Universal Credit claimants overpaid in error
The DWP has issued an update for anyone who might have been overpaid, stating that the department may ask for money back.
Universal Credit claimants can be required to repay money they received because of mistakes made by the Department for Work and Pensions. Liberal Democrat MP Tom Gordon has asked two written parliamentary questions, who represents Harrogate and Knaresborough. He had asked for clarification about how many Universal Credit overpayments caused by official errors had been recovered in each of the past three years, along with their total value. He also asked for details of how many applications to waive recovery of these overpayments had been received and approved over the same period.
Lilian Greenwood, Parliamentary Under-Secretary of State at the DWP, confirmed that official error overpayments are subject to the same recovery rules as those caused by claimants. She said: "Official error overpayments within Universal Credit are treated the same as claimant error overpayments, as all overpayments are recoverable and we no longer track them separately for administrative purposes."
She directed Mr Gordon to the department's published fraud and error estimates and its annual report and accounts, containing information about debt waivers. However, the response didn't detail totals for official error overpayments recovered during the three years requested.
An overpayment can be recovered even when the claimant did nothing wrong, and the mistake was entirely the department's responsibility, according to Universal Credit rules. This is different to rules that apply to some other benefits, where overpayments are automatically waived.
Excess Universal Credit payments are recoverable regardless of whether they resulted from a claimant mistake or an official error, as stated in the DWP's benefit overpayment recovery guidance. There are several ways to recover overpayments, including a deduction from future payments or an agreed-upon instalment plan.
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However, debts can be reduced or suspended depending on the claimant's circumstances. For example, the debts might be waived if repayment would cause significant hardship.
Waiver decisions can take into account a claimant's financial circumstances, the impact of recovery on their health or family, and the department's conduct. The DWP could consider how the overpayment arose.
Errors that are the DWP's fault do not automatically mean debts will be waived. Waivers require compelling grounds, according to the official guidance, with each request assessed according to the claimant's individual circumstances.
