Repaying a budgeting loan after returning to work

sezzlebum

Hi all

I recently returned to work and am in the process of repaying tax credit over payments and other debts when DWP wrote demanding payment for a budgeting loan i had when on benefits.

So i set up a standing order paying £5 per week and they sent me a letter today telling me thanks for the £5, but they want £35 a month or they are taking me to court.
That may not sound like much but child tax credits are already taking £60 a month of me too.
Can they do this? I mean im paying something, im not arguing about paying it but im still balancing out my finances at the moment on my own with 3 kids.

There isnt a date on the letter but i receieved it today and i have to contact them on monday at the latest, they arent even open until monday:mad:

Lioness_Twinkletoes

sezzlebum wrote: »

Hi all

I recently returned to work and am in the process of repaying tax credit over payments and other debts when DWP wrote demanding payment for a budgeting loan i had when on benefits.

So i set up a standing order paying £5 per week and they sent me a letter today telling me thanks for the £5, but they want £35 a month or they are taking me to court.
That may not sound like much but child tax credits are already taking £60 a month of me too.
Can they do this? I mean im paying something, im not arguing about paying it but im still balancing out my finances at the moment on my own with 3 kids.

There isnt a date on the letter but i receieved it today and i have to contact them on monday at the latest, they arent even open until monday:mad:

Yes, they can ask for £35 a week. You state that you are paying £5 a week? Well that is £21.66 a month, so you and them are not a million miles away. Increase your offer to £25 and see what they say. Complete an income and expenditure form and send that with your offer.

And no, they are not open at the weekend. Even Government employees are permitted time off

cattie

As previous poster mentions, you'll need to complete a income & expenditure form that DWP will send you if you ask for payments to be revised. They will then decide from this whether the amount you're offering to pay is acceptable or not or whether they feel your regular payment needs to be increased.

Be aware that with an overpayment claimed back from a non working benefit claimant, one third of total income is considered acceptable by DWP.

sezzlebum

Thanks for that, tbh next month will be the first month where i havent had to pay a large sum out, hence why i dont quite know my outgoings yet.

And no, they are not open at the weekend. Even Government employees are permitted time off

As much as i appreciate that, if they send me a letter that i recieve on a saturday and the deadline is on the monday then that hardly gives me time to actually get in touch with them does it??

Cate1976

When they say they'll take one third of income is that before or after allowing for living expenses?

cattie

With benefit claimants, it's one third of actual income. You're expected to live on what is remaining & if you can't do that then you ask for an income & expenditure form & somebody then decides if your actual outgoings are reasonable or not. They then let you know if they will agree a smaller repayment from you or if they will continue to deduct the same amount from benefits til debt is repaid.