Repay my DWP Debt Management Debt? – READ THIS BEFORE PAYING

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Despite the situation many of us are in, the DWP are sending more debt collection letters than ever before.
So many of us are on social security benefits, which is the right that we have in the UK.
However, sometimes these benefits get overpaid, which puts you in debt.
The DWP will take steps to try to recover the debt. In this post, I’ll cover all you need to know about why the DWP thinks you’re in debt, along with answering some FAQs about how to deal with them.
It’s not your fault. Complaints to the Financial Ombudsman have risen this year from 830 to 2,006, so it’s safe to say that you’re not alone.
Deal with your debt today and feel better tomorrow.
Don’t worry, here’s what to do!
You could get rid of DWP Debt Collectors by writing off some of your debt.
There’s several debt solutions in the UK, choosing the right one can take years off your debt, but the wrong one can be expensive and drawn-out.
Fill out the 5 step form to get started.
What is DWP?
The Department for Work and Pensions (DWP) is the UK’s biggest public service department.
It oversees and manages the pensions, welfare and child maintenance policies. The Debt Management team are like debt collectors, it’s their job to recover overpaid benefits.
It’s a very powerful department since it administers our pensions, disability and ill health benefits and also decides the working age of the people.
Are you struggling with debt?
Affordable repayments
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Why Would I Owe Money to the DWP?
You would owe money to the DWP if you have been paid a social benefit, and your circumstances change but you don’t tell them and therefore they continue paying you your social benefit.
However, once they find out that there’s been a mistake and you have been overpaid, you might need to repay what you owe. The DWP Debt Management can also contact debt collectors who will help in recovering the debt owed.
It is advised that you let the DWP know right away if you are being overpaid or if your circumstances change, even if you’re not sure that the change will make a difference to your welfare.
We can see here that Fizzly wrote on Money Saving Expert asking why the DWP were reclaiming a whopping 6 thousand pounds!
Now, we don’t know the full outcome of this, but one of the ways Fizzly could have avoided this is by keeping up with their Universal Credit journal. It’s important to check your Universal Credit journal if you have one because missing important messages like these could mean you’re completely unaware you owe money in the first place.
Read our article DWP Debt Management Letter – Should You Pay? 2022 Guide here to find out what to do next if you do owe DWP money.
What Does DWP Debt Management Do?
DWP debt management is a section of the Department for Work and Pensions which helps in recovering overpaid social security benefits.
It can also help us in recovering
- Unpaid Social Fund loans.
- Advance payments, which include both short term and long term advance payments.
- Housing benefits overpayments or tax credit payments that need to be reimbursed.
- Benefits from estates of deceased customers that have been overpaid. This is done by the Estates Team.
- Social security benefits can also be secured in compensation cases.
Customer support and contact are done in 6 different contact centres all over the UK. For the contact details either log on to gov.uk or you can telephone 0800 916 0647.
Calling the DWP contact number would be a better option considering the bizarre circumstances caused by the coronavirus (COVID-19) pandemic.If you want to head over, the DWP offices don’t follow the Monday to Friday routine and are readily available 24/7, even on public holidays.
How Do I Contact DWP Debt Management?
If you’re conscious about the COVID-19 pandemic, you should know that the DWP Debt Management offices ensure that proper procedures are followed and social distancing is maintained.
This means you can get the information and support you want without any obstacle.
By Phone
The DWP has a variety of jobs to do. This is why there are a lot of different phone numbers that can be called. The DWP phone numbers are listed in detail on the website gov.uk.
However, if you wish to contact the debt managers, the phone number is 0800 916 0647.
By Text
If you have hearing difficulties or are uncomfortable talking in person, you can also text at 0800 916 0651 for information and support.
By Letter
If you want to write a letter to the DWP debt management, you can write to their postal address or to the following address:
Debt Management (C)
Mail Handling Site A
Wolverhampton
WV98 2DF
All of their contact centres, except the compensation recovery unit, uses the given address.
By Email
Unfortunately, you cannot contact the DWP Debt Management office via your email address.

How Much Can DWP Take for an Overpayment?
When you’re no longer eligible for any benefit you’re receiving and do not inform the Department for Work and Pension, you owe some money to them. The DWP could decide to take an amount from your benefit. The maximum amount they can take depends on your yearly earnings and whether you’re guilty of an offense.
When making a decision, they consider a number of things. For benefits like income support and pension credit, the deduction rate is 5%.
However when dealing with Universal Credit, the deductions for overpaid securities can be 10% and can go up to 40% varying case from case.
Feeling like Chandler?
Is all this information starting to feel overwhelming? Don’t panic! There’s plenty of help available. You can get started below.
FAQs
Wrapping it Up
Recovering overpaid social security benefits seems like a cruel thing to do but it is important that the department doesn’t exceed their budget. If you are overpaid, keep in mind that a genuine case might be underpaid because of it.
I hope this article was helpful for you. If you have any questions, feel free to reach out and tell us on the email address provided.
Despite the situation many of us are in, the DWP are sending more letters than ever before.
Are you struggling with debt?
Affordable repayments
Reduce pressure from people you owe
Stop interest and charges from soaring