Social Security Benefits: Overpayments

(asked on 24th September 2020) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, how many and what proportion of people on (a) universal credit and (b) legacy benefits were subject to deductions for benefit overpayments in the last month for which data is available.


Answered by
Will Quince Portrait
Will Quince
This question was answered on 12th October 2020

UC collects overpayments from the full range of benefits, including tax credits. As more people have moved on to Universal Credit (UC) this has resulted in a greater proportion of these overpayments being collected through UC.

For UC claims with payments due during February 2020, around 23% (579,000 claims) had deductions for benefit overpayments. The deductions from UC for benefit overpayments include overpayments for tax credits, housing benefit and any DWP overpayments (including legacy benefits), not just UC overpayments.

For Legacy benefit claims with payments due during February 2020, around 1% (237,000 claims) had deductions for benefit overpayments.

The Department has an obligation to ensure that public funds are administered responsibly and to abide by the principles set out in Her Majesty’s Treasury’s guidance on Managing Public Money.

We understand the impact that debt can have on the wellbeing of claimants and we endeavour to ensure that the recovery of any overpayment is managed in a way that takes account of the claimant’s individual circumstances. Where a person says they cannot afford the proposed rate of recovery, a reduction in their rate of repayment may be agreed. Debts can be waived if recovery is causing substantial medical and/or financial hardship to a claimant or their immediate family

Our Work Coaches are trained to gauge claimants’ financial needs from their first contact and can refer them to more specialist support for personal budgeting, money guidance and debt advice if required, including through the Money and Pensions Service (MaPS).

Notes:

1. Claims figures rounded to the nearest 1,000.

2. Deductions for benefit overpayments include DWP, HMRC and Local Authority, fraud and non-fraud overpayments.

3. Figures are provisional and are subject to retrospective change as later data becomes available

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