DWP pursues thousands of claimants who were ‘overpaid’

Tens of thousands are seeking debt relief after the government offered them benefits before demanding repayment. Almost 10,000 people sought advice last year when they were told by the Department for Work and Pensions (DWP) that they were getting their money back.

Money Wellness, a debt counseling service, provided these figures. The service explained that several of the people affected had done nothing wrong and were victims of the DWP’s mistakes. Some owed absolutely nothing.

Sebrina McCullough, the service’s director of external affairs, pointed out: “The system is too complicated, it is too complex and it needs to be simplified and that in itself would prevent a lot of errors.”

She added that many of those dealing with the repayment of benefits are on the brink of financial crisis. “Six out of 10 of them use food bank vouchers and seven out of 10 are vulnerable in some way,” she said.

She urged: “The New Labor Government now has the opportunity to engage with the debt advice sector to better understand the issues we are seeing on the front line and make some changes.” BBC Radio 4’s Money Box program highlighted the scandal. They heard from Kevin Hylton, a crane operator from Birmingham.

Despite being eligible for Universal Credit during his time off work due to illness, he was pursued by the DWP for £13,000. Kevin had to deal with a serious bout of depression during the Covid pandemic, which led to him applying for and subsequently receiving Universal Credit.

However, after the DWP incorrectly determined he was ineligible for these benefits, he was suddenly asked to repay £13,000. Not only did this mean he lost universal credit, but he was also refused help with his rent and council tax, forcing him further into arrears.

Mr Hylton explained that he had no choice but to get help from a food bank and sometimes even cut off his electricity as it became unaffordable. He described the situation while speaking to the program: “It was mentally exhausting, mentally stressful. It was endless.”

Despite facing unimaginable trials both financially and emotionally, Mr Hylton fought back to regain his independence by returning to work as a crane supervisor. However, it took the BBCs Money Box for the DWP to admit that they were indeed wrong and that Mr Hylton was entitled to this welfare and should not have been prosecuted for overpayment.

Upon hearing this, Mr Hylton said: “There shouldn’t be a need for a journalist to contact the DWP for them to get their house in order. It’s really shocking.”

After being approached by Money Box, the DWP reported that it has now canceled Mr Hylton’s so-called “overpayment” and expressed regret for any pain caused. They included: “It is important that we continue to explore options to reduce fraud and error in the social security system, while supporting the most vulnerable in our society.”