For free and impartial money advice you can visit MoneyHelper. Just be warned, some debt solutions have ongoing feesand can affect your credit rating.
Table of Contents
- Don’t worry, here’s what to do!Jump
- What is DWP?Jump
- Why Would I Owe Money to the DWP?Jump
- What Does DWP Debt Management Do? Jump
- How Do I Contact DWP Debt Management?Jump
- How Much Can DWP Take for an Overpayment?Jump
- DWP Contact DetailsJump
- FAQsJump
- Wrapping it UpJump
Show more Show less
Despite the situation many of us are in, the DWP are sending more debt collection letters than ever before.
So many of us are on social security benefits, which is the right that we have in the UK.
However, sometimes these benefits get overpaid, which puts you in debt.
The DWP will take steps to try to recover the debt. In this post, I’ll cover all you need to know about why the DWP thinks you’re in debt, along with answering some FAQs about how to deal with them.
It’s not your fault. Complaints to the Financial Ombudsman have risen this year from 830 to 2,006, so it’s safe to say that you’re not alone.
Deal with your debt today and feel better tomorrow.
Don’t worry, here’s what to do!
You could get rid of DWP Debt Collectors by writing off some of your debt.
There are several debt solutions in the UK, choosing the right one for you could write off some of your unaffordable debt, but the wrong one may be expensive and drawn out.
Fill out the 5 step form to find out more.
Could you write off some DWP Debt Collectors debt?
Question 1 of 5
How much debt do you have?
£10,000 or more£6,000 – £10,000£1,000 – £6,000£0 – £1,000
This isn’t a full fact find, MoneyNerd doesn’t give advice. We work with The Debt Advice Service who provide information about your options.
What is DWP?
The Department for Work and Pensions (DWP) is the UK’s biggest public service department.
It oversees and manages the pensions, welfare and child maintenance policies. The Debt Management team are like debt collectors, it’s their job to recover overpaid benefits.
It’s a very powerful department since it administers our pensions, disability and ill health benefits and also decides the working age of the people.
Could you write off some debt?
- Affordable repayments
- Reduce Pressure from people you owe
- One simple monthly payment
GET STARTED
Why Would I Owe Money to the DWP?
You would owe money to the DWP if you have been paid a social benefit, and your circumstances change but you don’t tell them and therefore they continue paying you your social benefit.
However, once they find out that there’s been a mistake and you have been overpaid, you might need to repay what you owe. The DWP Debt Management can also contact debt collectors who will help in recovering the debt owed.
It is advised that you let the DWP know right away if you are being overpaid or if your circumstances change, even if you’re not sure that the change will make a difference to your welfare.
We can see here that Fizzly wrote on Money Saving Expert asking why the DWP were reclaiming a whopping 6 thousand pounds!
Now, we don’t know the full outcome of this, but one of the ways Fizzly could have avoided this is by keeping up with their Universal Credit journal. It’s important to check your Universal Credit journal if you have one because missing important messages like these could mean you’re completely unaware you owe money in the first place.
Read our article DWP Debt Management Letter – Should You Pay? 2022 Guide here to find out what to do next if you do owe DWP money.
What Does DWP Debt Management Do?
DWP debt management is a section of the Department for Work and Pensions which helps in recovering overpaid social security benefits.
It can also help us in recovering
- Unpaid Social Fund loans.
- Advance payments, which include both short term and long term advance payments.
- Housing benefits overpayments or tax credit payments that need to be reimbursed.
- Benefits from estates of deceased customers that have been overpaid. This is done by the Estates Team.
- Social security benefits can also be secured in compensation cases.
Customer support and contact are done in 6 different contact centres all over the UK. For the contact details either log on to gov.uk or you can telephone 0800 916 0647.
Calling the DWP contact number would be a better option considering the bizarre circumstances caused by the coronavirus (COVID-19) pandemic.If you want to head over, the DWP offices don’t follow the Monday to Friday routine and are readily available 24/7, even on public holidays.
Struggling with debt? Click here
If you’re conscious about the COVID-19 pandemic, you should know that the DWP Debt Management offices ensure that proper procedures are followed and social distancing is maintained.
This means you can get the information and support you want without any obstacle.
By Phone
The DWP has a variety of jobs to do. This is why there are a lot of different phone numbers that can be called. The DWP phone numbers are listed in detail on the website gov.uk.
However, if you wish to contact the debt managers, the phone number is 0800 916 0647.
By Text
If you have hearing difficulties or are uncomfortable talking in person, you can also text at 0800 916 0651 for information and support.
By Letter
If you want to write a letter to the DWP debt management, you can write to their postal address or to the following address:
Debt Management (C)
Mail Handling Site A
Wolverhampton
WV98 2DF
All of their contact centres, except the compensation recovery unit, uses the given address.
By Email
Unfortunately, you cannot contact the DWP Debt Management office via your email address.
How Much Can DWP Take for an Overpayment?
When you’re no longer eligible for any benefit you’re receiving and do not inform the Department for Work and Pension, you owe some money to them. In fact, repaying DWP overpayments is considered to be very important.
To account for the overpayment, the DWP could decide to take an amount from your benefit. The maximum amount they can take depends on your yearly earnings and whether you’re guilty of an offense.
When making a decision, they consider a number of things. For benefits like income support and pension credit, the deduction rate is 5%.
However, when dealing with Universal Credit, the deductions for overpaid securities can be 10% and can go up to 40% varying case from case. If you are concerned about repaying DWP overpayments, contact the DWP as soon as possible to discuss your options.
Feeling like Chandler?
All of this information can feel a bit overwhelming.
Luckily, there is help available. You may be able to write off some debt, or you may be able to put together a plan to tackle your debt with an expert.
Fill out this short form to get started
Are you struggling with unaffordable debt?
- Affordable repayments
- Reduce pressure from people you owe
- Lower monthly repayments
GET STARTED
| Telephone: | 0800 731 7898 Relay UK(if you cannot hear or speak on the phone): 18001 then 0800 731 7898 |
| Textphone: | 0800 731 7339 |
| Department Website: | https://www.gov.uk/government/organisations/department-for-work-pensions |
| Manage Benefit Repayments Website | https://www.gov.uk/repay-manage-benefit-owed |
FAQs
What is a DWP Debt?
The Department for Work and Pensions (DWP) recover debts for overpaid benefits. This could include unpaid social loan funds, tax credit overpayments as well as several other overpayments that need to be repaid.
Can DWP Write Off Debt?
Yes, the DWP can write off some of your debt by using your universal credit to pay off your benefit advances or overpayments.
How can I find out how much debt I owe DWP?
Contact the Centralised Attachment of Earning Payments (CAPS) office to find out how much you owe. If you can provide your case number when you call, DWP can also send you a history of all the payments you’ve made.
Why have I recieved a letter from DWP?
You will have received a letter from DWP if you provided them with incorrect information when making your benefits claim.
Can DWP recover overpayments?
The debt management department can definitely reclaim overpayments. In fact, the DWP can request information as far back as 12 years. They might also demand additional information to point out if any mistake has been made. However, during the coronavirus pandemic, the DWP stopped reclaiming overpayments due to social distancing protocols.
Can DWP check your Facebook?
People are worried that the DWP can access your Facebook for images and can later use these images as evidence in court. Well, they can. The court allows use of evidential images and the source is not specified. This means that the debt management office can definitely access our Facebook, and they don’t even have to tell us. What you can do is to recheck and make sure that the privacy settings are exactly how you want them to be, so that no unknown person can access your information.
Does the DWP debt management have an email address?
No, the information provided on the website does not include an email address. If you want to reach out, you can either call them, text them or write them a letter.
Can you ask the DWP for help?
If you’re thinking‘We fall under the requirements of the social benefit, maybe the department should help us.’,then you need to provide them with all the information they need. If they think that you fall under the criteria, you’ll start receiving your benefit.
Would the overpayment recovery continue in times of COVID-19?
No, the debt management office announced that due to the pandemic, the recovery processes are suspended and will continue after the risk has passed.
Wrapping it Up
Recovering overpaid social security benefits seems like a cruel thing to do but it is important that the department doesn’t exceed their budget. If you are overpaid, keep in mind that a genuine case might be underpaid because of it.
I hope this article was helpful for you. If you have any questions, feel free to reach out and tell us on the email address provided.
Despite the situation many of us are in, the DWP are sending more letters than ever before.