It also sets out what to do if you think they have made the wrong decision
Claiming benefits can be a tough road to navigate at times. It often involves completing lengthy forms and then having to stay on top of any changes to make sure you get all you are entitled to.
But failing to alert the Department of Work and Pensions of some things can mean you are paid too much money. Once the mistake is discovered it can leave people struggling to find the cash to repay.
There are a number of reasons the DWP can order people to pay back money. They can often happen easily and without claimants realising their mistake – the full list is here.
You made a mistake
One of the most likely reasons for having to repay money is if you made a mistake. This could be not including the correct details of your or your partner’s income.
If you have been paid too much you can be asked to repay it and there are no time-limits over how long it can take. However if you are being underpaid you can usually only get your money backdated fora month.
You failed to tell them your circumstances changed
The DWP advises: “You need to report changes to your circumstances so you keep getting the right amount of benefits. Your claim might be stopped or reduced if you do not report a change straight away or you give incorrect information.”
The changes you need to report include:
- changing your name or gender
- finding or finishing a job, or working different hours
- your income going up or down
- starting or stopping education, training or an apprenticeship
- moving house
- people moving into or out of the place you live (for example your partner, a child or lodger)
- the death of your partner or someone you live with
- having a baby
- starting or stopping caring for someone
- getting married or divorced
- starting or ending a civil partnership
- planning to go abroad for any length of time
- going into hospital, a care home or sheltered accommodation
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any changes to your medical condition or disability
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changing your doctor
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changes to your pension, savings, investments or property
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changes to other money you get (for example student loans or grants, sick pay or money you get from a charity)
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changes to the benefits you or anyone else in your house gets
- you or your partner getting back-pay (sometimes called ‘arrears’) for salary or earnings you’re owed
- changes to your immigration status, if you’re not a British citizen
You failed to notify a change in your child’s circumstances
The DWP says you must report any changes that could affect your Child Benefit to HM Revenue and Customs (HMRC). It adds: “If you do not, you may not get all the money you’re entitled to, or you may be overpaid and have to pay money back.”
You must tell Tell HMRC if your child:
- starts getting Universal Credit, Jobseeker’s Allowance (JSA) or Employment and Support Allowance (ESA)
- changes their name by deed poll
- gets married or forms a civil partnership
- moves in with their partner
- goes missing
Other reasons you must report include:
- If your child stays in or leaves education – Child Benefit stops on 31 August on or after your child’s 16th birthday if they leave approved education or training
- If your child moves away from home – you must notify HMRC if your child will live away from you for either 8 weeks in a row or more than 56 days in a 16-week period; will go abroad for more than 12 weeks; moves to or from Northern Ireland; goes to prison or youth custody for more than 8 weeks
- If your child goes into hospital or care – you must tell HMRC if your child goes into care or residential accommodation for more than 8 weeks, or hospital for more than 12 weeks
- If your child changes their gender – HMRC will usually be told automatically if your child gets a Gender Recognition Certificate to change their gender. If they have not changed their gender legally you do not need to tell HMRC
- If your child dies
With Child Benefit you must also alert the authorities if either you or your partner’s income goes above £60,000 as you might have to repay some of that money. This is usually done through a tax return.
You gave incorrect information about your circumstances
This is fraud. If you lie or deliberately give incorrect information it could mean not only repaying the money but also you could be taken to court leaving you with additional court costs or fines.
Payment error
Sometimes people are paid too much as a result of a technical mistake or a DWP error. This could be multiple payments or if your benefit has been incorrectly calculated as a result of a delay in processing updated information.
If you are paid too much you will have to repay the money regardless of who is at fault. People claiming Universal Credit, Jobseeker’s Allowance, and Employment and Support Allowance will usually have to repay the money however some other benefits might write off the mistake.
Late awards or delays with the system can also lead to overpayments at times. If a benefit is paid late and isn’t taken into account with some other payments, it could mean you are overpaid, but you will need to pay the excess back.
If you have been given too much money from support such as Maternity Payment or Winter Fuel Payment and it is your fault you will have to repay the money. However, if it is the DWP mistake, then they can’t reclaim it.
Advance payments
Some people, such as those claiming Universal Credit, can be paid an advance if they are waiting for their claim to be processed. However this must be repaid once the claim is completed.
Hardship payments
Thee payments are set up to help people who are struggling as a result of sanctions or penalties but must be repaid when the penalty or sanction ends. This is usually through deductions from future benefits.
Someone dies
The Department for Work and Pensions (DWP) can recover benefit overpayments from a person’s estate. An overpayment could have happened because, for example, the person who died:
- had more savings than they declared in their benefit claim
- had not declared an income
- was in hospital or a nursing home and had not told DWP
The DWP says: “You’ll be asked to provide information to help work out if anything needs to be repaid. You may need bank statements, building society passbooks or other information about the dead person’s assets.
“If there has been an overpayment the DWP will write to you asking for the money back from the estate. They will tell you how any overpayment has been worked out and explain why it happened. They will also tell you how to pay.”
What to do if you think you have been overpaid
The DWP says you must tell the office dealing with your benefit immediately if:
- you think you’re being overpaid
- your circumstances change
You may have to pay back the benefit if you’ve been overpaid.
What if you think they have got it wrong?
If you have been ordered to pay back benefits you need to be sure you know the reason why as it might be mistake. You will get a letter to let you know you have been overpaid.
The DWP says if you think the decision is incorrect you can ask for mandatory reconsideration. You usually need to do this within one month of receiving the letter.