DWP says there's seven reasons you might have to pay back benefits

The Department for Work and Pensions will try to recoup cash from benefit claimants in these seven circumstances, it has been warned. Benefit recipients in the UK may be forced to pay back money to the DWP - and could see their benefits reduced until the money is paid off.

The Department for Work and Pensions (DWP) says there are numerous reasons you might be required to return benefits - including when you have been overpaid. The reasons why benefit receivers may have to pay back DWP can vary but we've broken down the full list below.

In the UK, your eligibility for certain benefits is dependent on your personal circumstances, and if your circumstances change, then you may not be able to claim anymore. This could mean you have to repay your benefits to the DWP.

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You've made a mistake

You may have simply made an error on your benefits claim, like reporting the wrong income or not including all details of a partner's finances. You and your partner's incomes affect the amount of benefits you get, so getting it wrong can mean you are paid too much or too little.

If you're paid too much, the government can ask you to pay it back, and there's no limit on the time period over which this applies. If you are affected, it is crucial to address the matter swiftly to prevent increasing the amount owed - which could lead to heftier future repayments. If you're uncertain about owing money to the DWP, you’re encouraged to verify online.

There are multiple situations where you could find yourself in this scenario

Failed to report a change in circumstance

You might have been overpaid because you didn’t tell the DWP something you were meant to. For example, if you didn’t tell them you’d moved in with your partner, been paid more, for example because your part-time hours increased, stopped being a carer, stopped getting the disability benefit that entitled you to an Income Support disability premium or had a miscarriage - if claiming while pregnant.

In some circumstances you can challenge the overpayment if you didn’t tell the DWP something or if you made a mistake on the form.

Misrepresenting your circumstance

Another major issue is fraud. If you intentionally lie or misrepresent your circumstances, the DWP will classify it as benefit fraud. This can result in being taken to court or having to pay back the money with additional fines.

It can be hard to get the DWP to agree you don’t have to pay back the overpayment - so it’s best to get help. Contact your nearest Citizens Advice to ask an adviser to help you challenge the overpayment. If you don’t have a reason to challenge paying back the overpayment, you can ask to pay in instalments. You should tell the DWP if you can’t afford to pay anything at all

System errors

You should challenge paying back an overpayment that’s the DWP’s fault. For example, if you were overpaid because they made a mistake when calculating your payments, didn’t correctly record your information or any change of circumstances you told them about or didn’t put right a mistake you told them about.

Carefully read the overpayment letter, or call the DWP, to find out if they want you to pay back the overpayment. Sometimes they won’t ask you to pay them back if they know the overpayment was their fault.

Advances or interim payments

You may be able to get an advance on your first benefit payment if you're in urgent financial need. But if this is the case, you will usually need to pay it back through your benefits once you start receiving them. No interest will be added to the amount you owe, so you will pay back the exact amount you received.

If a claimant dies

If someone dies while still receiving benefits, payments might continue if the DWP isn’t notified in time. If someone has been overpaid this way, then the overpayments will be recovered from the person's estate. The DWP should write to you if an overpayment has been made. The letter will tell you how any overpayment has been worked out and explain why it happened. It will also tell you how to pay. If you need to discuss your payment, or setting up a repayment plan, call DWP’s Debt Management Recovery from Estates. The number is on the letter. The overpayment rules apply to Universal Credit and other similar benefits.

Social fund over payments

If you’ve received too much money from specific payments like the Maternity Payment or Winter Fuel Payment, and the over payment is due to incorrect information being provided, the government can reclaim the money. However, if the over payment occurred due to a government mistake, they can’t take it back.