DWP pursues thousands for benefits paid in error | Personal Finance | Finance
Thousands of people are seeking help with debt after the government paid them benefits only to then demand the money back.
Nearly 10,000 people sought advice last year after the Department for Work and Pensions (DWP) told them it would be taking money back.
The figures come from the debt counselling service Money Wellness which said many of the people involved were innocent victims of errors by the DWP – and some owed nothing at all.
Its director of external affairs, Sebrina McCullough, said: “The system is too complicated, it is too complex and it needs to be simplified and that in itself would prevent many errors.”
She said many of the people being supported with benefit repayments are facing a financial crisis.
Miss McCullough said: “Six in 10 of them are using food bank vouchers and seven in 10 are vulnerable in some way. The new Labour government has an opportunity now to engage with the debt advice sector to better understand the issues that we’re seeing on the front line and make some changes.”
The scandal was highlighted by the BBC Radio 4 Money Box programme, which was contacted by Kevin Hylton, a crane operator from Birmingham.
He was pursued by the DWP for £13,000 despite the fact he was informed he could claim Universal Credit when he was forced to take time off work due to illness.
Mr Hylton was laid low by a serious bout of depression during the Covid pandemic. As a result, he applied for and began receiving Universal Credit.
However, the DWP subsequently wrongly ruled he was not eligible and as a result he was expected to pay back £13,000.
This decision meant that not only did he lose UC, but he was also denied help with his rent and Council Tax which meant he fell into even more debt.
Mr Hylton said he was forced to to visit and food bank and had to effectively cut off his own electricity because he could not afford the bill.
He told the programme: “It has been mentally fatiguing, mentally stressful. It has been never-ending.”
Despite the huge financial and emotional cost, Mr Hylton managed to get back on his feet after getting back to work as a crane supervisor.
However, it was not until Money Box began investigating the case that the DWP admitted that Mr Hylton had actually been entitled to the benefits and should never have been pursued for an overpayment.
Mr Hylton said: “It shouldn’t take a journalist to have to contact the DWP for them to have their house in order. It’s really shocking.”
After being contacted by Money Box, the DWP said it had cancelled Mr Hylton’s “overpayment” and apologised for any distress caused.
It added: “It is important that we continue to explore options to reduce fraud and error in the social security system whilst supporting the most vulnerable in our society.”
