Letter from DWP saying there has been overpayments of benefits and demanding refund

MichelleManchester

Could somebody please help with an issue I'm having.

I've received a couple of letters from the DWP recently saying I have been overpaid benefits over a number of years, ending about two years ago, because of a mistake in their calculations of how much I was due and therefore I must repay them. The sum totals a few thousand pounds.

I am aware of this situation from before, and I was paying back a sizeable sum each week when I was on benefits.

However, I am no longer on benefits as of a year and a half ago and am very short of money, as I don't have an income. I am now a part-time student and I look after my elderly father who is quite ill. I get by on a very low expenditure, with money my father gives me from his pension (spending about £5 a week on my groceries for example).

The letters are becoming more forthright. The latest one I have just received states:

"DO NOT IGNORE

About the £xxxx owed

We have contacted you about paying back this money

You must make a payment by xx/xx/xxxx

Please do not ignore this letter. This will not mean you can avoid paying back this money, and you need to contact us to stop any further action being taken"

It goes on to say that they will consider recovering the money through the courts or "refer the case to a private company for repayment collection. You may have to pay additional costs if this happens, and your future credit rating may be affected"

I am very worried as you can imagine. I simply don't have the money.

I don't know what to do. I know from past experience the DWP can be inefficient (even in their current letters they are commenting I am on benefits, which I haven't been for a long time now) and do you think they might pass over/'forget' this fairly old overpayment if I ignore their letters, including the one I have just received? Or will they continue to pursue it?

If they will pursue it, what do you think I should do pls?

I am very appreciative of any help anybody could offer please.

rogerblack

It is unlikely they will forget.

Was the error entirely due to them.
Did they have all the information to process the claim correctly - and did not.
Or did you supply the wrong information and not correct it?

Dependant on the exact situation, ignoring it could even trigger a prosecution for fraud.
Why are you no longer claiming benefits?

MichelleManchester

Thank you for your reply.

It was entirely their fault. I believe they added some supplement to my Income Support benefit incorrectly and I had no idea at the time it wasn't meant to be added as the calculations are complicated.

I am no longer claiming benefit because I am not actively seeking work as I am tied up studying and looking after my father.

Do you think they would pursue it?

Dazedandconfused

Will they let you pay in instalments over a long period of time?

LUCKYAMB

It's unlikely the DWP will forget.

However, if you handed in all the relevant information and reported all changes in your circumstances, you could ask for the overpayment to be written off due to their error. They are unlikely to prosecute if it is only a couple of thousand pounds, but they will refer it to debt collection agency.

If you are a part time student you could still claim JSA? You still need to show your actively seeking, but could also get the hours are required to look for work, reduced due to your caring responsibilities.

You also haven't mentioned if your father gets AA, in which case you may be entitled to Carers Allowance?

I know this is extra to your question but it may help alleviate some problems/hardship. You should get in contact with benefit advice line, CAB or on the gov website.

Hope this helps

MichelleManchester

Thanks a lot for the advice. LUCKYAMB your guidance is most appreciated.

Unfortunately it is more than a couple of thousand. It is nearly £6k. Does that mean the DWP are more likely to pursue it?

I'm not an expert, but I think the DWP are usually quite reasonable in such circumstances and probably would let me pay it over a long period of time. But still I'd rather not pay it at all if possible, as I am short of money and it wasn't my mistake in any way, shape or form.

Do the DWP always pursue such cases, or am I just being naive by thinking they might just let it go if I don't respond to their letter?

LUCKYAMB

No problem.

Even at that amount they may not pursue you through court, due to the cost to them. However, as in my previous post they will refer it a debt collection agency, I know cases were they have done this for overpayments of under £100, who tend to be more forceful with their letters/action.

Are you sure the overpayment has been worked out correctly? You can call and ask for an in-depth explanation, if your happy it's correct, then make an affordable repayment offer. If you don't think it's correct then you can appeal(and possibly get it written off or reduced) and they will inform you of the process on the phone. You are correct in DWP will allow you to pay it over a very long time, much longer than any debt collection agency.

I know it's probably not the answer you wanted, but take a deep breath, be brave and make the call as soon as you can, you will feel a lot better for it!

Hope this helps.

45002

MichelleManchester wrote:

Could somebody please help with an issue I'm having.

I've received a couple of letters from the DWP recently saying I have been overpaid benefits over a number of years, ending about two years ago, because of a mistake in their calculations of how much I was due and therefore I must repay them. The sum totals a few thousand pounds.

I am aware of this situation from before, and I was paying back a sizeable sum each week when I was on benefits.

However, I am no longer on benefits as of a year and a half ago and am very short of money, as I don't have an income. I am now a part-time student and I look after my elderly father who is quite ill. I get by on a very low expenditure, with money my father gives me from his pension (spending about £5 a week on my groceries for example).

The letters are becoming more forthright. The latest one I have just received states:

"DO NOT IGNORE

About the £xxxx owed

We have contacted you about paying back this money

You must make a payment by xx/xx/xxxx

Please do not ignore this letter. This will not mean you can avoid paying back this money, and you need to contact us to stop any further action being taken"

It goes on to say that they will consider recovering the money through the courts or "refer the case to a private company for repayment collection. You may have to pay additional costs if this happens, and your future credit rating may be affected"

I am very worried as you can imagine. I simply don't have the money.

I don't know what to do. I know from past experience the DWP can be inefficient (even in their current letters they are commenting I am on benefits, which I haven't been for a long time now) and do you think they might pass over/'forget' this fairly old overpayment if I ignore their letters, including the one I have just received? Or will they continue to pursue it?

If they will pursue it, what do you think I should do pls?

I am very appreciative of any help anybody could offer please.

MichelleManchester wrote:

Thank you for your reply.

It was entirely their fault. I believe they added some supplement to my Income Support benefit incorrectly and I had no idea at the time it wasn't meant to be added as the calculations are complicated.

I am no longer claiming benefit because I am not actively seeking work as I am tied up studying and looking after my father.

Do you think they would pursue it?

MichelleManchester wrote:

Thanks a lot for the advice. LUCKYAMB your guidance is most appreciated.

Unfortunately it is more than a couple of thousand. It is nearly £6k. Does that mean the DWP are more likely to pursue it?

I'm not an expert, but I think the DWP are usually quite reasonable in such circumstances and probably would let me pay it over a long period of time. But still I'd rather not pay it at all if possible, as I am short of money and it wasn't my mistake in any way, shape or form.

Do the DWP always pursue such cases, or am I just being naive by thinking they might just let it go if I don't respond to their letter?

For Reference

http://www.consumeractiongroup.co.uk/forum/showthread.php?420824-Letter-from-DWP-saying-there-has-been-overpayments-of-benefits-and-demanding-immediate-refund

cattie

You need to be aware that the debt will never go away or be forgotten about. If it isn't repaid then any time you claim a DWP benefit, including state pension when you retire, they will start taking repayments from that.

The best thing is to agree a payment plan with them. They will probably want you to fill out an income & expenditure form so they can see what money you have coming in, where it goes & how much each month they think you can reasonably afford.

Of course they do have the option to take you to court for an order to repay the money, but it's far better to avoid anything like that happening, especially as a fine can be added to the amount currently owed, making you owe even more than you currently do.

pmlindyloo

Big_i5_Beautiful wrote: »

As it was not the OP's fault, the Court may well find in her favour. The benefits system is so difficult to understand it is not at all unacceptable to presume that their decision on what to pay is correct.

I doubt this very much. The OP will have received letters and should have checked the award. Ignorance of the system is not an acceptable excuse.

Besides which the OP had already accepted that there was an overpayment because it was being deducted from her benefits. The fact that the OP is no longer on benefits means they are now demanding payment.

The OP would be far better off sorting out some income for herself through applying for JSA/Carer's allowance/IS and have it deducted at a reasonable rate.

If the OP has no money/income then I do not see how they can make a payment plan.

poorlittlefish

How is it possible to only spend £5 per week on groceries?!

Whatever you do, don't ignore letters. If they do refer the matter to court or a debt collection company you'll likely have to pay additional costs. It's best to be up-front and honest about your situation, armed with the evidence to support your case. You definitely need to check if you are entitled to any benefits, although JSA might not be on the cards due to you studying.