How many years can DWP claim back?

Receiving a letter from the Department for Work and Pensions (DWP) informing you of an overpayment on benefits can be a daunting experience.

One of the most common questions people have is how far back the DWP can claim this money.

This article will provide a detailed explanation of the DWP’s recovery powers and offer guidance on potential courses of action.

What are DWP Overpayments?

An overpayment occurs when you receive more benefits than you were entitled to.

This can happen due to various reasons, including:

Generally, the DWP has six years to reclaim an overpayment. This is known as the limitation period.

However, there are many circumstances where this period may be extended or reduced.

The six-year limitation period begins when the overpayment occurs.

For example, if you received an overpayment of Universal Credit in April 2018, the DWP would typically have until April 2024 to claim it back.

While the general rule is six years, there are exceptions.

If you have admitted to owing the overpayment within the six-year period, the DWP can still pursue recovery even after that.

Additionally, if a court claim has been initiated within the six-year period, the DWP can continue with the claim even if the six years have passed.

If you have made any repayments towards the overpayment within the six-year period, the limitation period will restart.

This means the DWP will have another six years to claim the remaining balance.

Yes, the DWP can claim back overpayments through a direct earnings attachment (DEA).

This means they can deduct a portion of your wages directly without going through the courts.

There is no time limit on DEAs, so the DWP can use this method even after the six-year limitation period has passed.

If you believe you have been wrongly accused of an overpayment, you should contact the DWP immediately to dispute the claim.

You have the right to request a mandatory reconsideration of the decision.

If you remain dissatisfied, you can appeal to a tribunal.

Unfortunately, there is no automatic way to write off an overpayment.

However, if you can prove financial hardship, you may be able to negotiate a repayment plan with the DWP.

To reduce the risk of overpayments, you have to keep accurate records of your income and expenses.

You should also notify the DWP of any changes in your circumstances promptly.

Yes, the DWP can claim back overpayments on various benefits, including: