The Department for Work and Pensions (DWP) has confirmed that Universal Credit claimants can be required to repay money they received because of mistakes made by the department itself. The UK Government has also confirmed that it no longer separately tracks official error and claimant error overpayments for administrative purposes because both are recoverable under Universal Credit rules.
Parliamentary Questions on Overpayment Recovery
The clarification was provided in response to two written parliamentary questions from Liberal Democrat MP Tom Gordon, who represents Harrogate and Knaresborough. The MP asked 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 requested details of how many applications to waive recovery of these overpayments had been received and approved over the same period.
Responding earlier this week, 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."
The DWP Minister directed the MP to the department's published fraud and error estimates and its annual report and accounts, which include information about debt waivers. The response did not provide separate totals for official error overpayments recovered during the three years requested.
Rules on Recovering Overpayments
Under existing Universal Credit rules, an overpayment can be recovered even when the claimant did nothing wrong and the mistake was entirely the department's responsibility. This differs from the rules applying to some other benefits, where certain overpayments caused by official errors cannot be recovered.
According to the DWP's benefit overpayment recovery guidance, excess Universal Credit payments are recoverable regardless of whether they resulted from a claimant mistake or an official error. Overpayments may be recovered through deductions from ongoing benefit payments. Where someone is no longer receiving benefits, the DWP can seek repayment through an agreed instalment arrangement. However, the department has discretion over how debts are recovered and can consider reducing or suspending repayments where recovery would cause significant hardship.
Can Overpayments Be Written Off?
The DWP can also waive recovery of some or all of an overpayment in exceptional circumstances. Its published guidance states that waiver decisions can take account of a claimant's financial circumstances, the impact of recovery on their health or family, and the conduct of the department. This includes considering how the overpayment arose, whether the DWP missed opportunities to prevent it and whether the claimant could reasonably have known they were receiving too much.
However, an official error does not automatically mean the debt will be waived. The guidance states that waivers require compelling grounds, with each request assessed according to the claimant's individual circumstances. People seeking a waiver should normally make their request in writing and provide supporting evidence.
Requests can be sent to: Debt Management (C), Mail Handling Site A, Wolverhampton, WV98 2DF. The correspondence should be clearly marked Waiver Request. Claimants can also contact DWP Debt Management on 0800 916 0647 for information about the process.
Challenging an Overpayment Decision
Anyone who believes the DWP has incorrectly calculated an overpayment can ask for the decision to be reconsidered. According to GOV.UK guidance, claimants can request a Mandatory Reconsideration if they disagree with an overpayment decision, usually within one month of receiving the notification.
This is different from requesting a waiver. A Mandatory Reconsideration challenges whether the overpayment decision is correct, while a waiver asks the department not to recover money that is legally owed. Claimants experiencing financial difficulties can also ask the DWP to consider reducing or temporarily suspending repayments. The department's guidance confirms that recovery arrangements should take account of individual circumstances, including the potential impact on a household's finances and welfare.
