Universal Credit

(asked on 17th October 2018) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, which Department will be responsible for resolving disputes on the recovery of alleged tax credit overpayments by universal credit.


Answered by
Lord Sharma Portrait
Lord Sharma
COP26 President (Cabinet Office)
This question was answered on 26th October 2018

Where a person stops claiming Tax Credits and instead claims Universal Credit, DWP will take responsibility for Tax Credits debt that person has, which HMRC has not been able to recover at the point of transfer. This will enable recovery to continue through Universal Credit. As at the end of September 2018, £571m* of Tax Credits debt has transferred. This will increase as Tax Credits claimants move onto Universal Credit. DWP continues to work with HMRC and HM Treasury to better understand the make-up of the Tax Credits debt to be transferred. DWP’s 2017/18 annual accounts noted that £5.9 billion of tax credit debt will transfer across as part of the Universal Credit migration process.

* From DWP internal management information data

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