DWP could refund Universal Credit claimants who may have overpaid

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Some Universal Credit claimants could be due a refund from the DWP. Recent data from the Department for Work and Pensions (DWP) has revealed that at the close of October, 7.2 million individuals in England, Scotland, and Wales were beneficiaries of Universal Credit support.

Nevertheless, those who received Hardship Payments as part of Universal Credit in the timeframe from January 1, 2014 to January 11, 2021, might be entitled to a reimbursement, reports the Daily Record. These individuals are encouraged to request a review from the DWP regarding its prior decision on the mandatory repayment of the Hardship Payment by the impending deadline of May 4, 2025.

The DWP said: "This scheme is for people who received a Recoverable Hardship Payment from Universal Credit. Hardship payments provide financial protection for customers whose benefit is reduced by a sanction or a fraud loss of benefit penalty." Qualification for a refund is possible if the DWP turned down a plea to consider either:

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  • reviewing the rate of repayment, or

  • stopping ('waiving') their payment

Assistance is available for completing an application. Individuals can call the scheme helpline at 0800 158 5557.

Eligibility Criteria

A DWP review can be requested if you meet the following conditions:

  • DWP refused your request or refused to consider the request, and

  • between January 1, 2014 and January 11, 2021 you asked Universal Credit or DWP Debt Management to waive the repayment of a hardship payment, or reconsider the rate of recovery

Additionally, you must prove that either:

  • it had a significant effect at the time on your or your family’s health or wellbeing - this means that it caused a health condition or made a health condition worse, or

  • you could not afford to repay the hardship payment at that time

Application Process

Complete the application form available on GOV. UK here, ensuring it's submitted before May 4, 2025. Applicants will be required to furnish evidence from when the original request was made demonstrating that:

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  • the hardship payment affected your or your family’s health or wellbeing, or

  • you could not afford to repay your hardship payment

Possible evidence includes:

  • information from a doctor or other medical professional saying that repaying the money caused a health condition or made it worse

  • financial information from the time, such as bank statements, information about loans, or letters from creditors

You'll also need to supply details about your income and living expenses at the time. Even if you don't have all this information, you can still proceed with your application.

However, according to official guidance, providing as much information as possible will aid your application. You can also draft a letter addressing the questions on the form and send the form along with any other relevant documents to: Freepost DWP UNIVERSAL CREDIT FULL SERVICE.

Complete information about the Hardship Payment refund is available on GOV. UK here.