The Department for Work and Pensions (DWP) has released new guidance clarifying when benefit claimants will be forced to repay money, even in cases where overpayments were caused by mistakes made by the department itself.
MP Challenges Government on Vulnerable Claimants
The updated advice follows a direct challenge in Parliament from Liberal Democrat MP for Guildford, Zöe Franklin. She raised concerns about vulnerable individuals, including those with serious or terminal illnesses, being pursued for repayments due to 'official error' – mistakes made by the DWP, not the claimant.
Franklin specifically questioned what protections exist for claimants who had promptly notified the DWP they believed they were receiving incorrect payments, yet still faced repayment demands. In response, DWP minister Andrew Western outlined the department's position and the options available to those struggling.
Affordable Plans and Waiver Requests
Minister Western stated that DWP staff are trained to support vulnerable customers and that the department aims to set 'affordable and sustainable repayment plans'. He urged anyone unable to afford a proposed repayment rate to make contact.
For those with a serious or terminal diagnosis, he confirmed they can request the DWP to cease recovery of the overpayment through a 'waiver request'. However, official guidance linked by the minister makes it clear that waivers are only granted in exceptional circumstances and require compelling grounds. Such a request could lead to all or part of the debt being written off.
Your Responsibilities and How to Challenge a Decision
The DWP's public guidance stresses that claimants must report any changes in circumstances or suspected overpayments immediately. The warning is stark: 'You may have to pay back the benefit if you've been overpaid.' Failure to report a change or a mistake could result in a demand for repayment plus a potential £50 penalty.
If a claimant disagrees with a decision about an overpayment, they have the right to ask for a mandatory reconsideration. This process applies to a wide range of benefits, including:
- Universal Credit
- Personal Independence Payment (PIP)
- Employment and Support Allowance (ESA)
- Pension Credit
- Jobseeker’s Allowance (JSA)
- Carer’s Allowance
Minister Western confirmed this right to challenge decisions in his response to the parliamentary question on 26 December 2025.
