Devastating News
A single mother was left devastated when the Department for Work and Pensions (DWP) claimed she owed £12,000 in Universal Credit payments. Penny Davis, who has three children, was informed that she had been overpaid and would have to repay the entire sum or face wage deductions.
Successful Appeal
After launching an appeal, it was discovered that Penny had actually been underpaid by £2,000 and had missed out on cost of living payments. This decision came just days before her court hearing, providing her with much-needed relief.
PhD Funding and Universal Credit
Penny had taken a break from her PhD studies to focus on her family during the pandemic. While on break, she began claiming Universal Credit and working part-time as a teacher. However, the DWP later informed her that she had received too much money and would have to repay it. This error occurred because PhD funding is not treated as income in the same way as other earnings.
Pushing Families into Turmoil
According to charity Single Parents Rights, many parents only become aware of these debts when they receive a letter demanding repayment. The founder of the charity, Ruth Talbot, emphasized that these repayment demands are often unaffordable for families already struggling with the cost of living. She called for urgent changes to the appeal and debt cancellation system to alleviate the financial and emotional burden placed on families.
DWP Response
A spokesperson from the DWP stated that they strive to balance their duty to recover overpayments with the need to support individuals in managing their repayments. They highlighted that the rate of Universal Credit overpayments due to official error is currently at its lowest ever, standing at 0.6%.
What to Do If Asked to Repay
If individuals disagree with the DWP's decision and believe they have been asked to repay money that was not their fault, they can request a reassessment of their case. They should ask for a "mandatory reconsideration" and await another letter detailing the outcome. If still unsatisfied, they have the right to appeal the decision at a tribunal. Additionally, individuals can make a formal complaint about the customer service they received from the department. It is important to keep records of all correspondence related to the benefit claim and to raise any errors or issues promptly.
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