Benefit overpayments in Scotland have reached £1.425 billion, prompting changes to repayment rules. Overpayments occur when recipients receive more than entitled, often due to unreported changes in circumstances or errors by the recipient or Social Security Scotland.
The Department for Work and Pensions (DWP) has restarted recovery of overpayments after suspending them at the start of the coronavirus pandemic. Those affected will receive a letter or a journal entry on their online account if they claim Universal Credit, detailing when repayments will automatically restart.
For benefits administered by Social Security Scotland, overpayments from April 1, 2020 onwards will not need to be repaid until February 1, 2021. Recipients can still make voluntary repayments before that date. Existing repayment plans from before April 1, 2020 continue, but those unable to pay due to coronavirus can defer until February 1, 2021.
Recipients facing financial difficulty can request to repay over a longer period. Contact Social Security Scotland free on 0800 182 2222, quoting the reference number from the overpayment letter. Failure to report an overpayment may constitute benefit fraud, which can lead to fines or imprisonment.
Free independent advice is available from Money Advice Scotland (0141 572 0237) or local Citizens Advice Scotland offices.
