Who are DWP Debt Management?
DWP debts are collected by DWP Debt Management. The main debts they collect are benefits overpayments, but they also collect:
- Outstanding Social Fund loans
- Advances (payments on account), including short-term benefit advances
- Tax Credit overpayments
- Overpaid benefit from the estates of people who died
- Social security benefit relating to compensation cases
- NHS costs relating to injury cases
If you’ve been overpaid benefits, the repayments can be taken from you by:
- Making deductions from your benefit payments
- Taking it out of benefits that are owed to you
- Taking amounts directly out of your wages (this is called a direct earnings attachment)
- Getting a court order for debt recovery
If you’ve been overpaid Tax Credit but you’re still receiving it, the DWP will take money off future payments until the overpayment is paid off. If you’re no longer getting Tax Credit, the DWP will send you a bill and may expect you to pay in one lump sum.
How will I find out that I’ve had an overpayment?
If you’ve been overpaid a benefit, DWP Debt Management will write to you to let you know. They’ll explain why they think you’ve been overpaid.
If this happens, and you think the DWP has made a mistake, you should contact them straight away to let them know why. If they still think you’ve been overpaid, you can dispute the decision.
If you’ve received an overpayment, this doesn’t necessarily mean you’re being suspected of fraud.