Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Nomissbocaj
    • By Nomissbocaj 9th Jul 18, 8:27 AM
    • 1Posts
    • 0Thanks
    Nomissbocaj
    Dept. Work & Pensions debt
    • #1
    • 9th Jul 18, 8:27 AM
    Dept. Work & Pensions debt 9th Jul 18 at 8:27 AM
    Hello there,
    I am speaking on behalf of my partner. A number of years ago she suffered an illness for a few years and was supported by benefits. She also suffers from high mental health issues. Thankfully she progressed and was able to return to work eventually. However she was more focussed on surviving and continuing to do so, subsequently the benefits still came in during her employment.
    She understood the benefits to be something paid to her until she was 100% recovered, and wasn't in a right mental state to fully understand the situation.Dwp now say due to her not informing them of her employment she is now required to pay 15000 back and will only accept a minimum of 250 monthly repayments, which is almost a third of her monthly wage. Thus now potentially causing her further debt, stress and recurrence of illness.
    My post is to understand whether anyone knows where she stands. I am surprised they have been so forceful knowing her history and not delving into her current finances before demanding such a high repayment fee. Leaving her without money for general expenses and food, of which I now have to support her with.
    Hope someone can help.. Thank you.
Page 1
    • midnight express
    • By midnight express 9th Jul 18, 9:19 AM
    • 1,160 Posts
    • 3,267 Thanks
    midnight express
    • #2
    • 9th Jul 18, 9:19 AM
    • #2
    • 9th Jul 18, 9:19 AM
    Given the level of the overpayment and that the fraud was over a long period of time they have been lenient. Cases such as this often result in a prosecution for fraud and sometimes a prison sentence.
  • National Debtline
    • #3
    • 9th Jul 18, 10:27 AM
    • #3
    • 9th Jul 18, 10:27 AM
    Hi Nomissbocaj


    Please bear in mind that DWP may have simply defaulted to this rate they have demanded as it is a round figure - they won't know all of your household's precise ins and outs, so the onus is on your partner to make them aware of her current financial position in greater detail and attempt to negotiate more manageable payments on that basis. Putting together a budget or Statement of Affairs (SOA) - see link below - is essential:


    http://www.stoozing.com/calculator/soa.php


    On the flip side, it is worth pointing out that DWP can potentially seek to dock payments from her wages through a Direct Earnings Attachment if negotiations lead nowhere:


    https://www.gov.uk/make-benefit-debt-deductions


    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • iolanthe07
    • By iolanthe07 9th Jul 18, 10:30 AM
    • 5,041 Posts
    • 4,731 Thanks
    iolanthe07
    • #4
    • 9th Jul 18, 10:30 AM
    • #4
    • 9th Jul 18, 10:30 AM
    So it will take five years to repay the 15,000 without interest. I don't think the DWP could extend it much beyond that, tbh.
    I used to think that good grammar is important, but now I know that good wine is importanter.
    • JonVarnas
    • By JonVarnas 9th Jul 18, 10:00 PM
    • 4 Posts
    • 0 Thanks
    JonVarnas
    • #5
    • 9th Jul 18, 10:00 PM
    • #5
    • 9th Jul 18, 10:00 PM

    On the flip side, it is worth pointing out that DWP can potentially seek to dock payments from her wages through a Direct Earnings Attachment if negotiations lead nowhere:


    Originally posted by National Debtline
    Judging by that link the DWP would only take up to 10% of 750 earnings so there must be some wriggle room.
    • fatbelly
    • By fatbelly 10th Jul 18, 5:37 AM
    • 12,445 Posts
    • 9,493 Thanks
    fatbelly
    • #6
    • 10th Jul 18, 5:37 AM
    • #6
    • 10th Jul 18, 5:37 AM
    That is the higher rate, which I believe is for cases shown to be fraud. The standard rate is


    Employee monthly pay Deductions from earnings


    100 or less 430 or less Nothing to deduct
    430.01 to 690 3%
    690.01 to 950 5%
    950.01 to 1,160 7%
    1,160.01 to 1,615 11%
    1,615.01 to 2,240 15%
    More than 2,240 20%
    • zippygeorgeandben
    • By zippygeorgeandben 10th Jul 18, 7:37 PM
    • 856 Posts
    • 1,133 Thanks
    zippygeorgeandben
    • #7
    • 10th Jul 18, 7:37 PM
    • #7
    • 10th Jul 18, 7:37 PM
    It sounds like an interest free loan to me. Borrow 15,000 and pay it back over a length of time at 0%. Or are there penalties on top?
    End Sep 2016 End June 2018
    8236.57 0
    (Tesco 4.8%) 0pcm
    6185.75 0 (Zopa 4.0%) 0pcm

    5344.50
    490.04 (Sainsburys 0% until 06/19) 140pcm
    2000.00 133.33 (Sister 0%) 133.33pcm

    Total debt
    19.766.82 623.37 Original DFD May 2019.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

136Posts Today

1,723Users online

Martin's Twitter
  • RT @samgio1997: So glad you talked about the importance of taking out holiday insurance on this morning as a few years ago my auntie's pare?

  • RT @mmhpi: "Two years ago, I was in the fortunate position to be able to found @mmhpi... I?m incredibly proud of the work the team there is?

  • It means you should either have an annual policy in place, or book a specific single trip policy when you book https://t.co/oBDx8TmzQU

  • Follow Martin