DWP confirms tough rules on Universal Credit ‘overpayments’ due to helpline mistakes

DWP claimants have been issued with a new update over tough rules for Universal Credit claimants when it comes to compensation. The Universal Credit helpline is used by large numbers of people every day. It offers help with the benefit, which is a payment made once or twice a month to help people with living costs. People may be entitled to it if they are on a low income, or are unable to work or currently out of work. Around 8.4 million people are on the benefit .

One issue the helpline’s staff encounter is to do with compensation that a caller may be owed - and how Universal Credit could be affected by this when calculating your payment. Some money that a claimant gets affects how much they are entitled to in Universal Credit - such as money, savings and investments you and your partner have. But other sums are disregarded when assessing how much to give. These are called - in the jargon - ‘capital disregards’.

This is less complicated than it sounds and can cover things such as the value of your home, personal possessions (such as a car or furniture), or compensation schemes. But there are questions about what happens if people on the helpline give incorrect advice about these ‘disregards’ when it comes to compensation awards. The matter has been put into the spotlight after a question was raised by Tom Gordon, a Lib Dem MP for Harrogate and Knaresborough.

He asked what steps the Department “takes to make sure Universal Credit helpline advice on capital disregards for compensation awards is accurate; and whether it will waive overpayments where a claimant relied on incorrect advice from his Department.” The benefits advice website Turn2Us says that compensation awards that are not taken into account when assessing a Universal Credit claim include miscarriage of justice compensation payments and approved government compensation schemes.

The infected blood scheme, Grenfell Tower court settlements, the Windrush Compensation Scheme and the National Emergencies Trust are also not taken into account - or disregarded. On October 23, DWP minister of state Sir Stephen Timms issued a response to the MP’s question. But despite explaining what the rules are around the issue, he did not confirm that overpayments made due to helpline errors would not need to be paid back. Instead, he emphasised that the DWP has an obligation to claw back overpayments ‘wherever possible’.

He said: “The Department supports Universal Credit helpline staff through operational guidance, learning products and regular policy updates to help ensure advice is accurate and consistent. Staff have access to guidance covering the treatment of capital, including compensation payments and capital disregard provisions where the relevant conditions are met. “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. Overpayment recovery is subject to various legislative limitations and safeguards. “It is DWP policy to recover all debt where it is reasonable and cost effective to do so. Debts should be recovered as quickly and cost effectively as possible without causing undue financial hardship to debtors. Any difficulties in repaying debt should be discussed directly with the Department, where individual circumstances can be.”

According to government guidance, you may be required to pay back money if you have been overpaid. This includes where a mistake has been made with your payment. Official guidance also says you could have to pay the money back if the information you gave to the DWP was incorrect. You could also be made to repay the money if you did not report a change of circumstances straight away, or gave incorrect information when you reported a change of circumstances.

You can challenge such decisions. This process is called a mandatory reconsideration. For information on making such a challenge, visit the Citizens Advice website or for more on benefit overpayments, visit the gov.uk website . For more on Universal Credit claims, visit the government web page on the subject. The Universal Credit helpline can be called Monday to Friday, 8am to 6pm, on 0800 328 5644. Alternatively, you can use Relay UK if you cannot hear or speak on the phone) by dialling 18001 then 0800 328 5644.

You can also conduct a call in the Welsh language by calling 0800 328 1744. And theBritish Sign Language (BSL) video relay service can be used if you are on a computer - find out how to use the service on mobile or tablet here.