UNIVERSAL Credit claimants and others on benefits won’t be chased for benefits that have been overpaid by the government during the coronavirus crisis.
People are sometimes paid too much in benefits, which the Department for Work and Pensions (DWP) will then claim back from you.
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This could be because of a mistake, or because you gave incorrect information or didn’t inform DWP of a change in circumstance.
But it’s temporarily paused reclaiming overpayments of Universal Credit, tax credits, social fund loans, and legacy benefits.
This applies to people currently making repayments and to future overpayment cases.
There’s no set end date for this with the DWP saying it will continue for as long as it sees fit.
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But it doesn’t mean overpayments have been wiped – you’ll still have to repay them eventually, it’s just repayments won’t be taken for now.
If you’re still receiving benefits you make repayments through deductions to your monthly benefits.
This means you won’t need to do anything as DWP will automatically stop making these deductions.
But if you no longer receive benefits and were instead repaying payments by direct debit or standing order then you’ll need to contact your bank to cancel the payments for now.
Those making repayments by cash or cheque can also hold off on this for now.
The DWP couldn’t tell us how many people this applies to or what the average overpayment is.
It says it’s giving the temporary grace period to ensure people have more money in their pockets during the crisis, as well as to move staff from its repayments department to help process new claims.
But it’s worth noting that advance payments will still be deducted from benefits as normal.
What to do if you have problems claiming Universal Credit
IF you’re experiencing trouble applying for your Universal Credit, or the payments just don’t cover costs, here are your options:
Apply for an advance – Claimants are able to get some cash within five days rather than waiting weeks for their first payment. But it’s a loan which means the repayments will be automatically deducted from your future Universal Credit pay out.
Alternative Payment Arrangements– If you’re falling behind on rent, you or your landlord may be able to apply for an APA which will get your payment sent directly to your landlord. You might also be able to change your payments to get them more frequently, or you can split the payments if you’re part of a couple.
Budgeting Advance – You may be able to get help from the government to help with emergency household costs of up to £348 if you’re single, £464 if you’re part of a couple or £812 if you have children. These are only in cases like your cooker breaking down or for help getting a job. You’ll have to repay the advance through your regular Universal Credit payments. You’ll still have to repay the loan, even if you stop claiming for Universal Credit.
Cut your Council Tax – You might be able to get a discount on your Council Tax or be entitled to Discretionary Housing Payments if your payments aren’t enough to cover your rent.
Foodbanks – If you’re really hard up and struggling to buy food and toiletries, you can find your local foodbank who will provide you with help for free. You can find your nearest one on the Trussel Trust website.
Advance payments are only available to Universal Credit claimants – they’re effectively loans to see people through the five week wait until their first payment.
These loans are then repaid by docking monthly Universal Credit payments for the next year.
For people at the other end of the scale where benefits have been underpaid, DWP says it will still make payments to put people into the position they should have been.
Some 880,000 applied for Universal Credit in the past fortnight – up from around 100,000 in a normal two-week period.
It comes as chancellor Rishi Sunak upped the amount you can get under the benefit by £1,000 a year, as well as removing the minimum income floor for the self-employed.
But it’s meant huge delays trying to sign up for the benefit both online and over the phone.
DWP is drafting in around 10,000 existing staff to meet increased demand, as well as recruiting 1,500 extra people.
It’s also put benefit reviews and assessments on hold for three months so staff can instead focus on processing new applications.
In addition, it’s now calling applicants back who can’t get through and it’s revealed when’s the best time to apply online.
