Social Security Benefits: Overpayments

(asked on 3rd November 2022) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether he has made a recent assessment of the impact of repaying debt owed to the Government, including Council Tax and benefit overpayments, on the financial situations of people receiving benefits, in the context of the cost of living crisis.


Answered by
Tom Pursglove Portrait
Tom Pursglove
Minister of State (Minister for Legal Migration and Delivery)
This question was answered on 9th November 2022

The Department for Work and Pensions remains committed to working with anyone who is struggling with their repayment terms.

Where a person has been overpaid benefit and feels they cannot afford the proposed rate of recovery, they are encouraged to contact the department to discuss a temporary reduction in their rate of repayment.

The department has a well-established process for working with individuals to support them to manage any debts. Our agents will always look to negotiate affordable and sustainable repayment plans. This includes working with individuals to review their financial circumstances and, in most instances, a temporary reduction in their rate of repayment can also be agreed.

There is no minimum amount that a claimant has to pay, and we have recently extended the time period for any reduced repayment to remain in place.

The Government understands the pressures people are facing with the cost of living and has taken further decisive action to support people with their energy bills. The Energy Price Guarantee is supporting millions of households with rising energy costs, and the Chancellor made clear it will continue to do so from now until April next year. This is in addition to the over £37bn of cost of living support announced earlier this year, which includes the £400 non-repayable discount to eligible households provided through the Energy Bills Support Scheme.

This also includes up to £650 in Cost of Living Payments (paid in 2 lump sums of £326 and £324) which have targeted support at around 8 million low-income households on means-tested benefits. In addition, 6 million eligible disabled people have received a one-off Disability Cost of Living Payment of £150 and pensioner households will receive a one-off payment of £300 through, and as an addition to, the Winter Fuel Payment from November.

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