Benefit overpayments
Sometimes you might get more money in a benefit payment from the Department for Work and Pensions (DWP) than you should.
Find out why this might happen, what to do if it does and what your options are if you can’t afford to repay a benefit overpayment.
Why do benefit overpayments happen?
Benefit overpayments may happen because:
- you gave inaccurate information when you applied
- you forgot to let DWP know about a change in your situation
- DWP made a mistake
What to do if you think you’ve been overpaid
If you receive more money than you were expecting, tell DWP.
Failing to do this might mean you get a fine and you might even be charged with benefit fraud.
You’ll have to pay the money back eventually and the longer you let it go on, the more you’ll end up owing.
Reporting universal credit overpayments
You can report a universal credit overpayment by signing into your online account or calling the helpline.
What to do if you’re told you’ve been overpaid
You might not realise you’ve been overpaid until you get a letter from the benefit office.
If this happens, the letter should explain why you’ve been overpaid. If it doesn’t, ask the benefit office.
They should also let you know:
- how much you were overpaid each week
- how long you were overpaid
- how much extra you received in total
Tell them if you think any of the information is wrong.
If after contacting the benefit office, they still say you were overpaid but you don’t agree, you can dispute the overpayment.
You’ll need evidence to prove you haven’t been overpaid and you’ll usually need to do this within one month of receiving the letter.
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Who are DWP Debt Management?
They are part of the DWP and they’re responsible for collecting overpaid benefits.
Will I be fined?
If you do something that leads to a benefit overpayment, you may get a fine e.g. if you give inaccurate information or don’t tell DWP about something that means you end up getting more money than you should. You can appeal against a fine if you think it’s unfair.
Will I be charged with benefit fraud?
If you’ve received a benefit overpayment, it doesn’t automatically mean you’ll be suspected of benefit fraud. But if you’ve deliberately provided inaccurate information or failed to tell DWP about a change in your circumstances, you could be charged with benefit fraud.
If you receive a letter inviting you to an interview under caution for benefit fraud, you should try and get a solicitor to help you. Citizens Advice should be able to help you find a suitable and affordable solicitor.
Ask to change the date of your interview if it doesn’t give you enough time to get advice. You can do this by calling the number on the letter you received and explaining you’re in the process of appointing a legal representative.
What will happen if I don’t repay my benefit overpayment?
DWP may take court action against you if you don’t repay what you owe. If this happens, get in touch immediately for free debt advice.
If you can’t afford to repay the benefit overpayment
Contact DWP to let them know.
You could:
- apply for breathing space to get 60 days without contact from DWP giving you time to get advice
- show them how much you can afford to pay by sharing a budget with them
- tell them if you can’t afford to cover essentials, like food or heating
- use the debt and mental health evidence form if you have a mental health issue
DWP may:
- agree that you don’t need to pay them back
- agree to making lower payments over a longer period
- confirm that you need to repay the overpayment as originally requested
Are benefit overpayments ever written off?
They are usually only written off if:
- a long time has passed so the debt is now statute-barred
- the health and wellbeing of your family is at risk
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