DWP Debt Management and overpayments

Who are DWP Debt Management?

DWP Debt Management collect DWP debts.

They mainly collect benefits overpayments, but also:

• Outstanding Social Fund loans
• Advances (payments on account), including short-term benefit advances
• Tax Credit overpayments
• Overpaid benefit from the estates of people who died
• Social security benefit relating to compensation cases
• NHS costs relating to injury cases

Repayments can be taken:

• Out of your benefit payments
• Out of benefits you are owed
• Out of your wages (this is called a direct earnings attachment)
• By court order for debt recovery

If you have been overpaid Tax Credit and still receive it, the DWP will take money off future payments until it is paid off.

If you are no longer getting Tax Credit, the DWP will send you a bill. They may expect you to pay in one lump sum.

How do I know if I have been overpaid?

DWP Debt Management will write to let you know why they think you have been overpaid.

Contact them straight away to let them know if you disagree.

You can dispute the decision if they still think you owe them money.

You are not necessarily suspected of fraud for an overpayment.

What are benefits overpayments?

Benefit overpayments are a mistake with how much you are paid.

Repayments can be taken by:

• Deductions from your continuing benefit payments (most common)
• Taking amounts directly from your wages
• Getting a court order to recover the debt

If you think this is a mistake, you can ask for a mandatory reconsideration within one month of receiving the original letter.

What are Tax Credit overpayments?

Tax Credit overpayments happen if there is wrong or incomplete information on your application.

The Tax Credit Office will ask you to pay it back.

They will write to you to explain details of the overpayment, and how they expect you to repay it.

You can dispute the decisions if:

• You think the Tax Credit office made a mistake
• You think you were given incorrect information
• You think you were given incorrect advice

How do I challenge a decision?

You can ask for a mandatory reconsideration if you think the DWP has made a mistake.

You can:

• write a message in your Universal Credit online account
• Fill in a CRMR1 mandatory reconsideration request form on GOV.UK. Print and send it to the address on top of your decision letter
• write a letter to the DWP. Send it to the address on the decision letter
• Call the number on the decision letter

If you are near the deadline:

1. Call the DWP to say you want a mandatory reconsideration
2. Write to the DWP after you call to say why you want a mandatory reconsideration