More than a million people across the UK could be facing demands to repay benefits after being overpaid by the Department for Work and Pensions (DWP). According to reports, around 1.1 million individuals currently owe money to the department, a situation frequently discovered only after the funds have been spent.
Why Overpayments Happen: DWP Errors and Claimant Mistakes
While the immediate assumption might be claimant error, a significant number of these overpayments stem from mistakes made by the DWP or HM Revenue and Customs (HMRC). Technical glitches, processing delays, or incorrect data updates can lead to individuals receiving duplicate payments or sums higher than their entitlement. Crucially, the law requires repayment of any overpayment, regardless of who was at fault, for key benefits like Universal Credit, Jobseeker’s Allowance, and Employment and Support Allowance.
Other common causes include claimants failing to promptly report a change in circumstances, such as moving house or a change in income. Providing inaccurate information during an application, even unintentionally—like an incorrect date of birth or income figure—can also trigger a reclaim. Furthermore, advances or hardship payments received while waiting for a claim to be processed are typically treated as overpayments that must be repaid once the final calculation is complete.
Specific Benefit Reclaims and the Challenge Process
The issue extends to specific allowances. For instance, Child Benefit overpayments can occur if a partner's income rises above £60,000, with full repayment required if it exceeds £80,000, usually managed through the tax system. Payments may also incorrectly continue after a claimant has died, known as 'direct payments after death,' which are reclaimed from the estate.
If you believe a DWP decision to reclaim money is wrong, you have a clear appeals process. First, you must request a Mandatory Reconsideration within one month of the decision letter. If still dissatisfied, you can appeal to an independent tribunal, and potentially further to the Upper Tribunal on legal grounds. Legal aid may be available for this stage.
Are You Owed Money? How to Check Your Entitlement
Conversely, many people may be missing out on financial support they are rightfully owed. The government recommends using free, anonymous online benefits calculators to check eligibility. These tools, provided by organisations like Entitledto, Turn2us, and Policy in Practice, can estimate what you might claim and how starting work or changing circumstances would affect your payments.
For personalised advice, contacting a local benefits adviser is also an option. It is important to note that these calculators are not designed for use by prisoners, most students, those living permanently in care, or people who are not British or Irish citizens.
