The Department for Work and Pensions (DWP) has clarified that Universal Credit overpayments remain recoverable even when they result from incorrect advice given by its own helpline staff. The update follows a parliamentary question about how the department ensures the accuracy of guidance on capital disregards for compensation awards.
Helpline advice under scrutiny
The Universal Credit helpline handles large numbers of calls every day, assisting claimants with the benefit paid once or twice a month to support living expenses. Around 8.4 million people receive Universal Credit, and helpline staff regularly deal with questions about how compensation payments might affect entitlement.
Certain income influences how much a claimant receives, including money, savings and investments held by the claimant and their partner. Other sums are excluded when calculating the award, known in official terminology as 'capital disregards'. These can include the value of a home, personal possessions such as a vehicle or furniture, and compensation schemes.
MP raises concerns about incorrect guidance
Tom Gordon, the Liberal Democrat MP for Harrogate and Knaresborough, asked what measures the DWP takes to ensure helpline advice on capital disregards for compensation awards is accurate, and whether it would waive overpayments where a claimant relied on incorrect advice from the department.
According to the benefits advice website Turn2Us, compensation awards not considered when assessing a Universal Credit claim include miscarriage of justice compensation payments, approved government compensation schemes, the infected blood scheme, Grenfell Tower court settlements, the Windrush Compensation Scheme and the National Emergencies Trust.
DWP response on overpayment recovery
On October 23, DWP minister of state Sir Stephen Timms responded to the MP's question. He outlined the rules but stopped short of confirming that overpayments resulting from helpline errors would not need to be repaid.
Sir Stephen said: "The Department supports Universal Credit helpline staff through operational guidance, learning products and regular policy updates to help ensure advice is accurate and consistent. Staff have access to guidance covering the treatment of capital, including compensation payments and capital disregard provisions where the relevant conditions are met."
He added: "Universal Credit overpayments are recoverable, including those arising from official error. The Department has an obligation to protect public funds and to ensure that, wherever possible, overpayment and penalty debt is recovered. Overpayment recovery is subject to various legislative limitations and safeguards."
It is DWP policy to recover all debt where it is reasonable and cost effective to do so, with debts recovered as quickly as possible without causing undue financial hardship to debtors. Any difficulties in repaying debt should be discussed directly with the department, where individual circumstances can be considered.
