DWP left pensioner with £1.88 payment and £3,000 debt after wife took art course

A pensioner was plunged into a financial nightmare, racking up £3,000 in debt and destroying his credit score, after the Department for Work and Pensions (DWP) slashed his Universal Credit to a mere £1.88 per month.

Daniel Walsh, 74, said the DWP has "destroyed" him financially, physically, and mentally over the past eight months. The trouble started in September when his wife Esperanza, 48, embarked on a Master's degree in Art Therapy at university.

Previously, Daniel and Esperanza were receiving a monthly sum of between £439 and £568 from their joint Universal Credit claim, after deductions. Daniel, who also gets his state pension and Attendance Allowance due to needing a mobility scooter, and Esperanza, who was getting Carer's Allowance, anticipated changes to their benefits when she began her full-time studies, as full-time students are ineligible for some benefits, reports the Mirror.

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To cover her tuition, Esperanza took out a £6,000 loan, which, along with an additional £3,000 loan, paid for her course fees in full. She explained: "I didn't really have this money at all, it came into my bank account and it was gone soon after, it wasn't savings so we didn't think our Universal Credit claim would be cut by too much."

The couple experienced a jarring decrease in their Universal Credit claim in September 2023, receiving merely £95.29 from the Department for Work and Pensions (DWP). For the ensuing months, the figures remained low with payouts of £44.84, £95.29, and essentially nothing in January.

Similarly bleak payments followed in February and March, with the couple only receiving a paltry sum of £1.88. Commenting on their perplexing circumstance, Daniel shared: "I couldn't get my head around what was going on, it didn't make sense and a payment of £1.88 just feels insulting."

Thereafter, they logged this issue in their Universal Credit journal last year while continuously seeking assistance from DWP, however, their efforts were in vain. Esperanza also noted that their Carer's Allowance was erroneously deducted from their claim even though it had been discontinued, prompting her to request for a review of their housing cost calculations by the DWP.

Moreover, it seemed that even their claim was showing extra income being reported when there was no change in their financial circumstances whatsoever. Daniel disclosed that from September 2023 through to March 2024, they had sent in excess of 80 pleas for help pertaining their claims.

He stated: "We've been writing in our journal since September 2023 when all this nonsense started and not one of our questions has been answered. We are both reasonably intelligent, educated people. Honestly, it's crazy that we have been stonewalled by Universal Credit to get any answers to questions we have raised with them."

The couple were left reeling under the colossal financial impact of the DWP cuts, making them unable to meet their rent obligations thereby accumulating arrears which totalled over £3,000. In light of the ongoing cost of living crisis, coupled with these issues, Esperanza confessed that the entire scenario had been "absolutely detrimental" to their day-to-day existence, and they were reduced to relying on food banks to sustain themselves.

In a fortunate twist, however, as residents of an Almhouse charity property, they were spared the dire prospect of eviction. In this respect, Daniel confirmed that: "We are in constant communication with Almshouse charity and the administration, and, they have been very understanding and very supportive of us."

However, Esperanza voiced her concerns, revealing: "The DWP said they had contacted our landlord but we have been told that this has not been the case, they are efficient so Universal Credit must be lying to us. How do we fight that? ".

Daniel's financial difficulties have become so severe that he has been obliged to resort to a Debt Relief Order, which will negatively affect his credit file for the coming six years. Fearing he may pass away bearing this "black mark", Daniel laments the drop in his credit score from the high 890s to mere 500s after a lifetime of responsible money management.

With assistance from the Money Wellness charity, Daniel took out the Debt Relief Order which offers him some respite in terms of debt management while he continues to receive support from the charity.

Visibly distressed, Daniel shared: "They have ruined me physically, mentally and financially. I don't want to die because I don't want to leave the mess which is not our making behind for Esperanza to pick up, But mentally, I don't know if I can do this anymore. I've been put on medication and I have been registered with a crisis team because I've come so close sometimes."

To shed light on these issues, The Mirror contacted the DWP for clarification regarding the couple's claim. Upon reviewing, the DWP acknowledged their error in deducting 70% instead of the actual 30% off Esperanza's student payment.

Additionally, they admitted inaccuracies concerning their housing payments due to missing details about the couple's rent in their system.

The Department for Work and Pensions (DWP) has confirmed that between August 2023 and April 2024, a couple was underpaid by £5,315.65 due to errors in their Universal Credit payments. The underpayment, which the DWP has now reimbursed, was attributed to incorrect information regarding housing costs, mistakes in student loan deductions, and improper deductions of Carer's Allowance.

Daniel and Esperanza, affected by the miscalculation, have utilised the reimbursement to settle their rent arrears and other debts that had piled up. The DWP is also reassessing their monthly Universal Credit entitlements.

While relieved that their situation is being rectified, Daniel expressed his frustration with the DWP's mishandling: "I have had to enter into a Debt Relief Order and ruin my credit reference scores for the next six years due to the incompetence of the DWP, not to mention the deterioration in my mental health and life as a whole."

In response to the incident, a DWP spokesperson stated: "After reviewing this case, we have reimbursed Mr and Mrs Walsh in full and have apologised to them for the error made."

This news coincides with the introduction of new DWP regulations requiring Universal Credit claimants to seek additional work or increase their hours if they are working less than 18 hours a week at the National Living Wage.