The Department for Work and Pensions (DWP) has confirmed that Universal Credit overpayments remain recoverable even when they arise from incorrect advice given by its helpline.
The issue was raised by Liberal Democrat MP Tom Gordon, who asked whether the DWP would waive overpayments where claimants had relied on wrong advice from its helpline about compensation they are owed and how this could affect their Universal Credit entitlement.
Minister's response on recoverability
DWP minister Sir Stephen Timms responded by confirming that overpayments remain recoverable, including those arising from official error. He said: "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."
Compensation disregarded in assessments
Some compensation awards are disregarded when Universal Credit is assessed, including miscarriage of justice payments and approved government schemes such as the Windrush Compensation Scheme and Grenfell Tower court settlements. The DWP says it aims to recover debts where reasonable and cost-effective, without causing undue financial hardship.
Claimants who believe a decision is wrong can challenge it through a process called a mandatory reconsideration.
