DWP can automatically deduct Claimants Overpayments due to Official Errors but YOU Can Challenge i: New research has revealed that thousands of people are being forced to repay benefits they received due to errors made by the Department for Work and Pensions (DWP). Despite the mistakes being official errors, the DWP continues to deduct overpayments from claimants’ benefits.
This issue has sparked outrage among charities and campaigners, who are urging the government to change its approach and stop penalizing innocent claimants for mistakes made by the system.
Thousands Affected by DWP Overpayment Errors
During the financial year 2023/24, the DWP classified 686,756 cases of Universal Credit overpayment as official errors. However, despite the department admitting responsibility, claimants were still required to repay the money.
Under current rules, the DWP can automatically deduct repayments from a person’s benefits, even if they were not at fault. Claimants are notified of the overpayment and have the right to challenge it, but in many cases, deductions proceed regardless.
Charities Demand Policy Change
A coalition of over 30 leading charities, including the Public Law Project (PLP), Joseph Rowntree Foundation, and Age UK, has called on the Work and Pensions Secretary Liz Kendall to introduce new laws to prevent people from being unfairly burdened with repayment demands.
These organizations argue that the DWP should follow the same rules applied to housing benefits, where repayments are not required if the claimant had no reasonable way of knowing they were overpaid.
“DWP Must Take Responsibility for Its Mistakes”
Shameem Ahmad, CEO of the PLP, has strongly criticized the DWP’s approach, stating:
“No one expects the DWP to be perfect, but when mistakes happen, the department should take responsibility instead of pushing the burden onto vulnerable people.”
She further warned that forcing innocent claimants into debt due to government errors creates financial hardship and anxiety. Ahmad urged the government to act, saying:
“This is the government’s chance to restore public trust and ensure that the DWP is held accountable for its mistakes.”
Legal Victory Over DWP Sets a Precedent
In a significant legal win in 2023, the PLP and North Bristol Advice Centre helped a claimant successfully challenge a demand to repay £8,623.20 in Universal Credit overpayments.
The woman had correctly informed the DWP in 2019 that her disabled son was starting an apprenticeship. The department assured her that this change would not affect her benefits. However, nearly 18 months later, she was told she had been overpaid and was ordered to repay over £8,600—placing her in severe financial distress.
Reflecting on her case, the claimant said:
“When I was told I owed DWP over £8,000, I was in disbelief. I had done everything right, yet I was facing years of repayments and financial hardship. The worst part was knowing that DWP was in the wrong.”
She urged others in similar situations to seek legal support, stating:
“Going to court was stressful, but I finally feel heard. If you’re in this situation, get help—without the North Bristol Advice Centre and PLP, I couldn’t have done this.”
DWP Defends Its Approach
Despite increasing criticism, the DWP has disputed the figures provided by the PLP, stating that it no longer tracks whether overpayments are due to official errors in its debt management system.
A DWP spokesperson defended the department’s policies, saying:
“Overpayments due to official errors account for just 0.3% of our total benefits spending. We always work with claimants to ensure repayments are affordable.”
The spokesperson also emphasized the government’s crackdown on fraud, stating:
“We have a duty to protect public funds. That’s why we are introducing the biggest fraud crackdown in a generation, aiming to save taxpayers £1.5 billion over the next five years.”
The controversy over DWP overpayments continues to grow as more claimants struggle with repayment demands for errors they did not cause. With charities, legal experts, and campaigners pushing for change, the pressure is mounting on the Labour government to introduce fairer policies and prevent more people from being pushed into unnecessary debt.
For now, claimants who receive an overpayment notice should seek legal advice and challenge unfair deductions to avoid financial hardship.
FAQ’s
Why are Universal Credit claimants being asked to repay DWP errors?
Despite DWP mistakes, claimants are still required to repay overpayments due to current government policies.
Can I challenge a DWP overpayment claim?
Yes, claimants can challenge overpayment demands by requesting a Mandatory Reconsideration and appealing to an Independent Tribunal if necessary.
What should I do if I receive an overpayment notice from the DWP?
Seek legal advice immediately. Organizations like the Public Law Project and Citizens Advice can help you challenge unfair deductions.
What changes are charities demanding from the DWP?
Charities want the DWP to stop demanding repayments for official errors and follow the same rules applied to housing benefits.
How much is the DWP planning to recover in fraud and overpayment crackdowns?
The government plans to recover £1.5 billion over the next five years through fraud and overpayment investigations.
