The Department for Work and Pensions (DWP) has confirmed that Universal Credit overpayments may have to be repaid even if they were caused by incorrect advice from a DWP helpline.
Around 8.4 million people claim Universal Credit, which is paid once or twice a month to help with living expenses, and the helpline handles large volumes of queries daily.
One common query involves 'capital disregards' - sums excluded when calculating Universal Credit entitlement, such as the value of a home, personal possessions, or certain compensation payments.
MP raises concerns over helpline accuracy
Concerns were raised by Liberal Democrat MP Tom Gordon, who asked the DWP what steps it takes to ensure helpline advice on capital disregards for compensation awards is accurate, and whether overpayments resulting from incorrect advice would be waived.
DWP minister Sir Stephen Timms said the department has an obligation to recover overpayments wherever possible, noting: "Universal Credit overpayments are recoverable, including those arising from official error."
Repayment and financial hardship
He added that debts should be recovered "without causing undue financial hardship", and that claimants facing difficulties repaying should discuss their individual circumstances directly with the department.
