DWP’s costly mistakes
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For free & impartial money advice you can visit MoneyHelper. We work with The Debt Advice Service who provide information about your options. This isn’t a full fact-find, some debt solutions may not be suitable in all circumstances, ongoing fees might apply & your credit rating may be affected.
Benefit overpayments have become a financial nightmare for many, thrusting people into unexpected debt.
The Department for Work and Pensions (DWP) has made errors amounting to a staggering £600 million between 2022 and 2023, unleashing a devastating effect on claimants who find themselves struggling for cash.
These miscalculations are deducted from future payments and benefits, leaving people grappling to cover their essential expenses.
Personal stories
The impact of these errors is deeply personal, The Big Issue encouraged readers to share their stories. Yvonne and her husband faced bureaucratic hurdles due to mistakes in his pension, leading to unjust demands for repayment from the DWP.
Despite diligent efforts to update the DWP on any changes, the couple received threatening letters, forcing them to seek help from a debt advice service. They suffered a lot of stress, but battled to get the monthly repayment down to £20.
The alarming aspect is that in some instances, the allegations of debt are completely inaccurate. Penny Davis, a single mother, was falsely accused of owing the DWP over £12,000, while in reality, the DWP owed her more than £2,000.
Vikki Reid, a widowed mother and PhD student, faced a £21,000 bill due to an error in her universal credit payments.
The human toll of these mistakes raises questions about the accountability and empathy within the DWP decision-making process. A DWP spokesperson confirmed that it’s always a human behind these decisions, but failed to address the evident impact on people’s lives.
Challenging DWP’s decision
There is always the option to challenge DWP decisions. Claimants can request a mandatory reconsideration and seek a written statement detailing the reasons for the overpayment.
The next stage involves appealing a benefit decision to a tribunal within a month of receiving the mandatory reconsideration decision. The outcome of the appeal, whether a win or a loss, triggers subsequent actions by the DWP.
Speak up to the DWP the moment anything changes in your circumstances and make sure you’re heard.
Let’s hope that the DWP finds a fairer way to deal with the aftermath of their mistakes when it comes to overpayments. Taking more time to assess the devastating effects of paying unaffordable sums back because of a costly mistake imposed by them.
