DWP overpayment recovery

Clouds88

Hello,

Does anyone know if for example, esa have given an underpayment of £5000, UC want all of this as an overpayment if we can offer £4,000 now and pay the remainder 1K off of our ongoing benefits at 100Pm.

 We still have some expensive credit we could do with paying off that we took out due to receiving less benefit than we were entitled to over the last few years which has now been corrected. Obviously due to the monthly interest rates it would be cleared paying in lump sum rather than monthly payments continue.
Thanks.

calcotti

When there has been a UC overpayment I think they would not normally expect it all to be paid back in one go if you are still on UC. They would take it back by monthly deduction from your future UC payments.

TELLIT01

If I'm interpreting things correctly, you have been in receipt of payment amounting to £5k from UC for a period when you had an entitlement to ESA, but ESA was not paid.  Now ESA have acknowledged the error and paid the £5k.

If I'm correct, you have actually received the equivalent of the payment  via UC.  If that is the case then there is absolutely no reason for this money not to be repaid immediately. 

Was there a period when you were receiving neither ESA nor UC?  If so, for how long?

Clouds88

Always on UC, ESA hasnt paid any money since june 2020. So we missed out on an extra element of UC which has now been awarded and I've since paid off majority of our debt that has been accumulated over the last 2 years.

The last few years have been a struggle with money, I've taken out pay day loans which obviously the interest is high and you then get stuck paying more interest ect. UC havent sent us the amount we owe yet, weve received ESA backpsyment today which I've put to one side and waiting on how much UC say.

 But the whole point of what I'm saying is that through a fault of DWP (many complaints my end/hold up their end, we lost the ESA50 form, we lost the UCab information, I dont know why someone has closed the claim, someone hasnt re opened it properly, the list of incompetences and excuses is endless) we were on a reduced income for the last year and a half, If they would let us use one grand to clear remaining high APR debt which was there fault anyway, and pay that via monthly instalments out of our UC award and obviously repay the rest of the money owed (when  they demand it) straight away. 

JIL

Are you saying you have an overpayment of universal credit? But you are due arrears of ESA. 
Have you actually received these arrears directly to yourself? It usually happens in the background and called an offset,
https://www.gov.uk/government/publications/benefit-overpayment-recovery-staff-guide/benefit-overpayment-recovery-guide  3.15.

if you use it to repay other non dwp debts all that will  probably happen is the UC overpayment will be recovered by deductions from future universal credit payments.  

Have you had any letters about the universal credit overpayment? If yes, phone the number on the letter if you are considering repaying some of the money as a one off. 

calcotti

JIL said:

.. It usually happens in the background and called an offset,

Where UC is involved I don’t think offset does happen but I’d be interested to hear from those more in the know.

JIL

calcotti said:

JIL said:

.. It usually happens in the background and called an offset,

Where UC is involved I don’t think offset does happen but I’d be interested to hear from those more in the know.

It does definitely happen. I will find a link. 

calcotti

JIL said:

calcotti said:

JIL said:

.. It usually happens in the background and called an offset,

Where UC is involved I don’t think offset does happen but I’d be interested to hear from those more in the know.

I am in the know.

OK. Surprised then that I am aware of claimants receiving, for example, Carer’s Allowance arrears and then being told there has been a UC overpayment with no offset put in place (whereas it used to work quite well with Carer’s Allowance and ESA). Bit hit and miss perhaps.

JIL

calcotti said:

JIL said:

calcotti said:

JIL said:

.. It usually happens in the background and called an offset,

Where UC is involved I don’t think offset does happen but I’d be interested to hear from those more in the know.

I am in the know.

OK. Surprised then that I am aware of claimants receiving, for example, Carer’s Allowance arrears and then being told there has been a UC overpayment with no offset put in place (whereas it used to work quite well with Carer’s Allowance and ESA). Bit hit and miss perhaps.

Sorry pressed post too quickly,  it's an area I have done some work in.  I didn't mean to come over as abrupt.  I will find a link. 

Does this help? 

https://www.whatdotheyknow.com/request/debt_management_guidance_for_off

calcotti

JIL said:Does this help? 

https://www.whatdotheyknow.com/request/debt_management_guidance_for_off

That information request deals with the opposite scenario where there has been an underpayment of UC and arrears of UC are therefore due.

The reply simply connects to the standard debt recovery guide which you referred to earlier.

OP was asking about the situation where arrears of a different benefit such as ESA or CA are paid meaning that an overpayment of UC has occurred which DWP then need to recover. Logically there should indeed be offsetting and I have no doubt that they have the legal power to offset but I am not clear it actually happens with UC in these situations

JIL

calcotti said:

JIL said:Does this help? 

https://www.whatdotheyknow.com/request/debt_management_guidance_for_off

That information request deals with the opposite scenario where there has been an underpayment of UC and arrears of UC are therefore due.

The reply simply connects to the standard debt recovery guide which you referred to earlier.

OP was asking about the situation where arrears of a different benefit such as ESA or CA are paid meaning that an overpayment of UC has occurred which DWP then need to recover. Logically there should indeed be offsetting and I have no doubt that they have the legal power to offset but I am not clear it actually happens with UC in these situations

Is the arrears of ESA, one of the cases that have been in the news, recently?

Where claimants of ESA were moved onto universal credit and then they were worse off?

Whichever, the fact the op seems to have had a payment sent to him. 
I think its reasonable that he should expect DWP to have offset in the background.