DWP issues 'deductions' warning to anyone on Universal Credit

A woman looking worried and stressed while sat in front of a laptop
-Credit: (Image: Getty Images)


People claiming Universal Credit are being warned action could be taken if they are overpaid their benefits. Some claimants could risk losing their benefits completely if they owe money to the Department for Work and Pensions (DWP).

In some cases, an error may mean that you are overpaid on your Universal Credit. This can happen for a number of reasons, including a mistake by the benefit office or a claimant not accurately reporting a change in circumstances.

If you notice an overpayment, you must immediately tell the benefits office which deals with your claim. You may not lose access to your payments. pay a penalty or be prosecuted for benefit fraud if you do not.

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How to report a Universal Credit overpayment

You can report an overpayment through your online Universal Credit account or contact the Universal Credit helpline on 0800 238 5644. You may also receive a letter informing you that you have been overpaid.

If you believe the letter is wrong and you were not overpaid, you can ask for mandatory reconsideration which usually needs to be done within one month of receiving the letter. You can do this either through your Universal Credit account or by contacting the benefits office directly.

How to make a repayment

You can make a repayment if you are still receiving benefits. In this case, your regular benefit payments will be reduced until the money is completely paid back.

You must contact the DWP Debt Management contact centre by dialling 0800 916 0647 to do this. But if you no longer claim benefits, you may get a letter from DWP Debt Management explaining how you can repay and manage the benefit money you owe.

What happens if you don't pay back the money

If you fail pay back the money you owe or contact the DWP Debt Management Contact Centre, they can carry out a range of action. This includes:

  • Asking your employer to make deductions from your wage

  • Givimg your case to an independent debt collector

  • Giving your case to the DWP Debt Enforcement Team

If you continue to ignore any warnings, you may get a county court judgement which can end up adding more costs and affect your credit score for up to six years.