benefit recalled from bank

I recieved letter from DWP on Monday stating i was due a payment of employment and support allowance of £174.00 which was a backdated payment from Nov last year, i was unaware i was owed this but assumed it was due to me claiming income support in Dec as i was pregnant. prior to this i had been claiming employment and support allowance. The letter states that this payment will be in my bank Wed, this payment was put into my bank then immediatley recalled so i was unable to use this money. i spoke with DWP who said they realised they made a mistake and i was not owed this money therefore recalled it. i asked how they could do this without informing me, she said a letter was sent out yesterday to say it was an overpayment and when i claimed benefits agreed for them to recall any overpayments they make in error, due to having a new baby and waiting for child tax credits and child benefit to be processed i bought essential items for my daughter knowing the funds i used which were for a secured loan on my home would be back in bank account on Wed. i am now in a position where the direct debit for my mortgage will be refused and will incur bank charges on top of this. does anyone know if DWP can recall this money without informing me first. thanks

Comments

  • bunny999
    bunny999 Posts: 970 Forumite
    Yes they can.
  • healy
    healy Posts: 5,292 Forumite
    Part of the Furniture 1,000 Posts
    I recieved letter from DWP on Monday stating i was due a payment of employment and support allowance of £174.00 which was a backdated payment from Nov last year, i was unaware i was owed this but assumed it was due to me claiming income support in Dec as i was pregnant. prior to this i had been claiming employment and support allowance. The letter states that this payment will be in my bank Wed, this payment was put into my bank then immediatley recalled so i was unable to use this money. i spoke with DWP who said they realised they made a mistake and i was not owed this money therefore recalled it. i asked how they could do this without informing me, she said a letter was sent out yesterday to say it was an overpayment and when i claimed benefits agreed for them to recall any overpayments they make in error, due to having a new baby and waiting for child tax credits and child benefit to be processed i bought essential items for my daughter knowing the funds i used which were for a secured loan on my home would be back in bank account on Wed. i am now in a position where the direct debit for my mortgage will be refused and will incur bank charges on top of this. does anyone know if DWP can recall this money without informing me first. thanks

    I think they can do this as the money was paid in error and as they have said it is mentioned in DWP literature. They have informed you that the money was paid in error by letter.
  • healy
    healy Posts: 5,292 Forumite
    Part of the Furniture 1,000 Posts
    bunny999 wrote: »
    Yes they can.

    Brief but to the point!
  • bubbles0169
    bubbles0169 Posts: 6,230 Forumite
    Part of the Furniture Combo Breaker
    its awful isnt it
    it might be too little too late but i NEVER rely on government payouts(apart from child benefit) as ive been stung before, we had to pay tax credits back which took a year- we had informed them of every thing we earned but still had to pay it back
    I am not bossy I just have better ideas:p
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