The Department for Work and Pensions (DWP) is under scrutiny after being accused of making 686,756 mistaken overpayments and continues to deduct claimants’ benefits despite calls to stop the practice. A charity has highlighted the significant number of individuals who are being forced to repay benefit overpayments due to errors made by the DWP. Campaigners are urging the Labour party to address this issue, which affects hundreds of thousands of people across the UK.
According to research by the Public Law Project (PLP), in the financial year 2023/24, the DWP identified 686,756 cases of Universal Credit overpayments attributed to “official error.” Despite acknowledging their fault in these incorrect payments, the DWP still requires claimants to repay the funds. The PLP has assisted many claimants in reclaiming money lost to DWP overpayment demands and is advocating for legislative action to address this systemic issue.
The PLP, along with 30 other prominent charities, has reached out to the Secretary of State for Work and Pensions, Liz Kendall, urging for a fairer approach to Universal Credit overpayments. Signatories, including the Joseph Rowntree Foundation and Age UK, are calling for alignment with housing benefits policies, where overpayments are not reclaimed if the claimant could not have reasonably known about the excess payment. This change would alleviate financial pressures on claimants and prevent undue hardships.
Shameem Ahmad, CEO of the Public Law Project, emphasised the detrimental consequences of official payment errors on individuals, causing sudden financial strains and anxieties. By shifting the responsibility for mistakes onto claimants, the DWP is failing to support those in need. The PLP’s successful High Court case in 2023, resulting in the cancellation of an £8,623.20 Universal Credit debt, highlights the potential impact of challenging DWP overpayment demands.
In response to these allegations, the DWP contested the figures provided by the PLP, stating that overpayment by official error accounts for only 0.3% of their overall benefits spend. The DWP claims to work with individuals to ensure repayments are manageable and is implementing measures to crackdown on fraud and error. However, the ongoing struggle faced by claimants like the one who had £8,600 in debt cancelled raises concerns about the current system’s fairness.
As the Labour government anticipates welfare spending cuts, amounting to billions of pounds, the debate around benefit overpayments and deductions intensifies. The impact of these policies on vulnerable individuals and families cannot be understated, highlighting the need for a more compassionate and effective approach to managing benefit payments and rectifying errors promptly.
The call for reform within the DWP is growing louder, with demands for transparency, accountability, and fairness in the administration of benefits. As the government faces increasing pressure to address these systemic issues, the plight of claimants caught in the crossfire of bureaucratic errors serves as a stark reminder of the importance of prioritising the well-being of all citizens in need of support.