DWP Confirms Benefit Overpayments Must Be Repaid, Even After Official Errors
DWP: Benefit overpayments must be repaid after errors

The Department for Work and Pensions (DWP) has confirmed that individuals may be forced to repay benefit overpayments, even in cases where the mistake was made by its own officials. This includes people battling serious or terminal illnesses.

Vulnerable Claimants Face Repayment Demands

The stark admission came in a written parliamentary statement from DWP minister Andrew Western. It highlights a contentious issue where the department clawed back a staggering £2.7 billion in overpaid benefits during the 2023-24 financial year. This figure includes payments incorrectly issued to claimants.

Charities and campaigners warn that the policy can have devastating consequences for society's most vulnerable. They argue that even modest repayment requests can cause severe financial and emotional distress for families already grappling with a medical crisis.

Ministerial Response to Parliamentary Question

The issue was brought to light by Liberal Democrat MP for Guildford, Zöe Franklin. She pressed the minister on what steps the DWP is taking to protect those with serious or terminal diagnoses from being unjustly pursued for repayments that arose from official error.

In his response, Mr Western stated that the department "will always strive to set affordable and sustainable repayment plans" and urged claimants to make contact if they cannot afford the proposed rate.

What Rights Do Claimants Have?

The minister's statement outlined several key rights for claimants:

  • People with a serious or terminal diagnosis can request that the DWP cease recovery of their overpayment. This is known as a waiver request, and details are available in the DWP's Benefit Overpayment Recovery Guide.
  • Anyone who believes they have been wrongly asked to repay money can request a mandatory reconsideration of the decision.
  • If dissatisfied with the outcome of a mandatory reconsideration, claimants have the right to appeal.

The DWP maintains that all its staff are trained to support vulnerable customers and that repayment plans are designed to be manageable. Guidance on these rights is available on the official government website.

With thousands of terminally ill claimants potentially affected each year, campaigners continue to call for a more transparent and compassionate policy to safeguard those suffering from severe ill-health.