Universal Credit

(asked on 15th November 2021) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, how many waivers were granted for universal credit overpayments classed as official error in financial year 2020-21.


Answered by
David Rutley Portrait
David Rutley
Parliamentary Under-Secretary (Foreign, Commonwealth and Development Office)
This question was answered on 18th November 2021

The table below details the number of waivers of Universal Credit Official Error overpayments granted in the requested years:

Financial Year

Number of UC Official Error overpayments where recovery was waived

2020/2021

9

2021/2022 (April to October)

5

Please note that this data is taken from operational data systems, and is not intended for publication. Therefore, the data itself is not quality assured to the standard of published Official Statistics and National Statistics.

DWP pays welfare benefits to around 23 million people and is committed to ensuring that the right people are paid the right amount of Universal Credit. The vast majority of benefit expenditure (more than £200bn across all benefits last financial year) is paid correctly, with front line staff working hard to prevent overpayments from occurring.

Where an overpayment does occur, the Department has a responsibility to taxpayers to recover the money without creating undue financial hardship. Universal Credit overpayments are recoverable, irrespective of how they arose. Where recovery is made by deduction from Universal Credit, there is a limit placed on the overall amount that can be deducted. Formerly 40% of the Universal Credit Standard Allowance, this was reduced to 30% in October 2019 and again to 25% in April 2021.

A waiver can only be granted where the recovery of the overpayment is causing substantial medical and/or financial hardship, and where clear evidence of this can be provided.

However, any claimants struggling with the proposed rate of deductions are encouraged to contact DWP Debt Management to discuss affordability, so that a lower repayment rate can be negotiated as appropriate.

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