BENEFIT BLOW
How to challenge a benefit overpayment demand from the DWP
We explain what to do if you're asked to pay money back
IF you get a letter from the Department for Work and Pensions (DWP) saying that you’ve been paid too much money, it can be very stressful.
Overpayments can happen for lots of reasons including system errors, changes in your circumstances, and even mistakes made by the government itself.
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The bad news is that if you have been overpaid you almost always need to pay the money back, even if you didn’t notice and have spent it already.
However, you can usually speak to the DWP to work out a monthly payment plan, or there will be a deduction in future benefit payments until the debt is repaid.
The benefit office will determine how much money you should have received, what needs to be paid back, and whether you need to pay a penalty (for instance if you lied about your circumstances).
However, if you think that your payments were correct and you shouldn’t owe DWP anything, then you can challenge the decision.
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We revealed earlier this year that some people are being sent overpayment demands, but after we intervened, it turned out they didn't owe a penny - so it's worth checking.
Single mum Penny Davis managed to get a £12,382 bill wiped after she challenged a Universal Credit overpayment demand - and found she was actually owed £2,000.
What to do if you get a letter saying you’ve overpaid
You should get a letter from the benefit office explaining why they think you’ve been overpaid. If you haven’t been given the reasons in writing, ask for them.
If you still think there’s a mistake, start by phoning up the benefit office and explaining the issue.
Give them any evidence you’ve got that supports your belief that you’ve not been overpaid. This might resolve the problem quickly.
If that doesn’t work and you still disagree, you can formally dispute an overpayment by asking for a free mandatory reconsideration. You must do this within a month of receiving your original letter.
You might be able to get an extension in some circumstances, for instance if you’ve been in hospital or had a bereavement.
Don’t forget, someone will look at your whole benefit claim again. This means your benefit could stop, stay the same, increase or decrease.
If you’re not sure, you can contact a charity such as , , or StepChange for help. They can also provide advice if you've been accused of benefit fraud. You can also seek advice from a legal professional.
The government says you can ask for mandatory reconsideration if any of the following apply:
- you think the office dealing with your claim has made an error or missed important evidence
- you disagree with the reasons for the decision
- you want to have the decision looked at again
What benefits qualify for a mandatory reconsideration?
You can ask for mandatory reconsideration for most benefits including:
- Attendance Allowance
- Bereavement Allowance
- Carer’s Allowance
- Carer’s Credit
- child maintenance (sometimes known as ‘child support’)
- Compensation Recovery Scheme (including NHS recovery claims)
- Diffuse Mesotheliomia Payment Scheme
- Disability Living Allowance (DLA)
- Employment and Support Allowance (ESA)
- Funeral Expenses Payment
- Income Support
- Industrial Injuries Disablement Benefit
- Jobseeker’s Allowance (JSA)
- Maternity Allowance
- National Insurance credits
- Pension Credit
- Personal Independence Payment (PIP)
- Sure Start Maternity Grant
- Universal Credit (including advance payments)
- Winter Fuel Payment
Before making a request for a mandatory reconsideration, make sure you understand why the decision was made. Being clear will help you to explain your case.
If you need help understanding the reason for your benefit decision, call the benefits office. They should be to explain and answer any questions you might have.
You can ask for a written explanation from the benefits office - known as a ‘written statement of reasons’. You can still ask for mandatory reconsideration after that but must do so within 14 days from when you get the statement.
How to ask for mandatory reconsideration
To ask for a mandatory reconsideration, you need to contact the benefits office. If you get Universal Credit, you can do this via your journal. Other ways to ask for one include by letter, by phone, or by filling in and returning a form.
The contact details may vary depending on which benefit the dispute refers to, but they should be on your overpayments letter.
If you want to dispute a Housing Benefit or Council Tax Reduction overpayment, you'll need to contact your local authority.
For tax credits or Child Benefit, you need to HMRC.
What you need to provide
When asking for a mandatory reconsideration, you’ll need to provide:
- The date of the initial decision
- Your full name and address
- Your date of birth
- Your National Insurance number
You need to say which part of the decision you think is wrong and provide supporting evidence to prove it.
For example, this could be medical evidence or bank statements and payslips. The government says you should only include evidence you have not already sent, and that you should not include general information about your condition or unrelated appointment details.
Make sure you write your name, date of birth and National Insurance number at the top of each bit of evidence so it’s clear it relates to your claim. Unfortunately, you can’t claim back the costs of providing evidence.
If you’re not sure what evidence to send, read the guidance on the . You can also ring the benefits office, or speak to a charity or legal adviser.
What happens next?
The benefits office will reconsider its decision about your overpayment. You’ll then get a letter called a ‘mandatory reconsideration notice’ telling you whether they’ve changed their minds.
This letter should explain the reasons for the decision and the evidence it was based on.
If you disagree with the outcome, you can . This must be done within one month of getting the letter, unless you have a good reason.
This body is independent of government, and a judge will listen to both sides of the argument before making a final decision.
If you were overpaid
You can usually try to negotiate to make sure that your repayments are affordable.
If you think the repayments will leave you in serious hardship, you should let the benefits office know as they may be able to help.
You can also ask the DWP if it will "exercise its discretion not to recover an overpayment", which means writing off what you owe.
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They don’t have to say yes, and if they refuse you, it can’t be challenged. You need to give as much evidence as possible about how the payments will affect you and your family.
Even if you have very good reasons, bear in mind it is extremely rare for the DWP to decide you don’t need to pay back the money if you genuinely owe it.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
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