Universal Credit - HELP

middster

I wonder if you can help with a Universal Credit query that relates to my daughter?

She claimed Universal credit from April 2018 until February 2019 after supplying the DWP with everything they asked for information wise relating to her earnings and circumstances.

In February 2019 she received a notice from Universal Credit saying she owed them over £2500 as they had overpaid her. It was 100% their mistake as they fully acknowledged in a letter to her.

I attended an appeal tribunal with her to try to get the debt wiped as it was a multitude of errors by the DWP which ended up with her owing so much
Despite sympathising with her case and circumstances, the Judge highlighted he was unable to change the law (Jacobs 2018). He suggested complaining direct to them which we did in July but have heard nothing at all back. Had the overpayment been for any other benefit he said the debt would have been wiped due to the mess the DWP made.

The DWP only actually admitted they had made a mistake once this went to tribunal. Until then, it was a series of unsympathetic letters, none of which admitted any culpability. The lack of empathy from them is astounding. She has not received one call or letter offering any help in the circumstances they are solely responsible for creating.

Even since the mistake by them was highlighted and she closed her Universal Credit claim, she continued to be paid by them a further 3 times, despite ringing up continually asking them to stop.

She has now received a notice to call DWP's debt management by 11 Nov to discuss a payment plan back to them. What is frustrating is we have still not received any reply to the complaint made in July and she can't afford to pay the debt back unless it is very minimal payments. She is naturally very stressed with everything and I worry about her.

Any advice is greatly appreciated.

Thankyou

pmlindyloo

This link is a good read to explain the actual legislation and process for recovery:

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/770083/benefit-overpayment-recovery-guide.pdf

Hopefully someone with personal knowledge of an overpayment of Universal Credit will also post.

calcotti

As the judge has confirmed any overpayment of UC is fully recoverable because that is what has been written into law by the government.

Unfortunately your daughter will need to engage with DWP debt management and agree a repayment plan. If she is on a low income the repayment period may be an extended period in order to make the repayments more manageable.

DWP policy statement as given in the link pnlindyloo has provided

"The Secretary of State 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 the Department’s 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."

Alice_Holt

I sympathise. Changing the legislation to make all UC overpayments recoverable, was IMO a rather spiteful act by the government.
It certainly doesn't encourage the DWP to get things right, nor to respond quickly to UC notified changes.
It's almost as if the politicians foresaw the chaos a combination of inadequate UC systems, and a reduction in staff numbers might visit on claimants.

If your daughter can demonstrate financial hardship the DWP should consider writing it off.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/770083/benefit-overpayment-recovery-guide.pdf
See Chapter 8.

Escalate the compliant by contacting your MP (and even the DWP Sec of State).
Also raise a compliant about the DWP not responding to the first compliant.

Unfortunately, it may mean agreeing a payment schedule - I suggest the use of a income / expenditure format such as:
https://www.stepchange.org/debt-info/how-to-make-a-budget.aspx

Edit: Cross posted with posts 2 & 3.

calcotti

Alice_Holt wrote: »

Changing the legislation to make all UC overpayments recoverable, was IMO a rather spiteful act by the government.
It certainly doesn't encourage the DWP to get things right, nor to respond quickly to UC notified changes.

Completely agree with that.

middster

Thanks everyone, we did write to the local MP who actually replied quickly and was sympathetic. The local CAB have been pretty helpful and correctly advised dont' bother to go to tribunal as they won't overturn anything. My optimism got the better of me!

calcotti

The following House of commons deposited paper is also relevant (but says the same thing!)

http://data.parliament.uk/DepositedPapers/Files/DEP2019-0980/93._Overpayments_v4.0.pdf
"Any payment of Universal Credit made in excess of entitlement is a recoverable overpayment, regardless of how the overpayment was caused. This includes those overpayments arising wholly as a result of official error. This is because there is a duty to protect public funds and an obligation, wherever possible, to make sure that an overpayment is recovered."

Interestingly there are also items about the DM needing to consider the imposition of a Civil Penalty on the claimant where claimant error has occurred - but, of course, no equivalent come back on the DWP where it is their error.