The Department for Work and Pensions (DWP) is accused of employing aggressive debt collection practices that surpass those of most banks. The Money and Mental Health (MMH) Policy Institute highlights that beneficiaries face harsh treatment after being overpaid, often due to changes in their circumstances or departmental errors. Once an overpayment is identified, the DWP can swiftly start recovery, potentially deducting 15 percent from universal credit payments, leading to substantial income loss for claimants. This approach poses risks for vulnerable individuals reliant on social support.
The Department for Work and Pensions (DWP) is carrying out aggressive and rapid debt collection practices which are more severe than most banks, a charity founded by Martin Lewis has claimed.
Benefit overpayments occur when someone is paid more by the DWP than they are entitled to, most often because of a change in their circumstances or due to an error by the department.
The DWP can rapidly begin taking payment within weeks of spotting the issue, with agents able to directly deduct 15 percent of someone's monthly universal credit payment to recoup these overpayments.
The Money and Mental Health (MMH) Policy Institute states that the way the DWP treats people who are overpaid benefits is harsh, risking putting vulnerable claimants at risk.
Collection
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