DWP Universal Credit helpline 'overpayment' errors update on rules - key details

Universal Credit claimants may have to repay benefit overpayments even if they were caused by incorrect advice from a DWP helpline, the department has warned. The issue was raised by Lib Dem MP Tom Gordon, who asked whether the DWP would waive overpayments where claimants had relied on wrong advice from its helpline over compensation they are owed and how this could affect their Universal Credit entitlement. DWP minister Sir Stephen Timms responded by confirming that overpayments remain recoverable, even when they arise from official error.

He said: "Universal Credit overpayments are recoverable, including those arising from official error. The Department has an obligation to protect public funds and to ensure that, wherever possible, overpayment and penalty debt is recovered." Some compensation awards are disregarded when Universal Credit is assessed, including miscarriage of justice payments and approved government schemes such as the Windrush Compensation Scheme and Grenfell Tower court settlements.

The DWP says it aims to recover debts where reasonable and cost-effective, without causing undue financial hardship. Claimants who believe a decision is wrong can challenge it through a process called a mandatory reconsideration. READ THE FULL STORY: DWP confirms tough rules on Universal Credit 'overpayments' due to helpline mistakes