What is DWP Debt Management?

This is part of the Department for Work and Pensions (DWP) who look after:

• Benefits overpayments
• 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

You should never ignore calls or letters from DWP Debt Management

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If they say you owe them money you should find a way to deal with this as soon as possible. If you do not pay what you owe, repayments can be taken:

• Out of your benefit payments
• Out of benefits you are owed
• Out of your wages
• By court order for debt recovery

What you need to do if you have been contacted by DWP Debt Management

Take action as soon as you can. Your options will be to:

• Pay it all back in one go – but only if you can afford to
• Pay it back in stages
• Tell them you do not have to pay – but only if you can prove that

You need to:

1. Check the details of what they say you owe and make sure they are right. If not, you can dispute the debt
2. If you are worried you will not be able to afford the repayments or other important bills, get free debt help before things get worse. We are here to help, you can get started online at any time of day. Start debt advice now, you can pause and restart whenever you want
3. Get in touch with DWP Debt Management, whatever you have decided to do and update them

If you are getting help from us, do tell them that. And if you have your monthly budget, which we will work on with you as part of your advice, you can share that with them. This shows them how much you can afford to pay.

Why do I owe money to DWP Debt Management?

It is often because you have been overpaid by the government.

DWP Debt Management will write to let you know why they think you have been overpaid.

This often happens because there was a mistake in working out what to pay you.

DWP Debt Management, or the Tax Credit Office, will write to you to explain details of the overpayment, and how they expect you to repay it.

• If they expect you to repay through your benefits or tax credits: Payments will start being taken, meaning you get less than usual
• If they expect you to repay through your wages: A direct earnings attachment will be ordered which gives them the right to take money from your salary

Before either of these things happen, you have the chance to arrange a way to pay what you owe.

Contact DWP Debt Management and share your budget. You can let them take the money from your wages or benefits or set up a payment arrangement with them.

If you are worried about not being able to pay what you owe, we are here to help you

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We take a look at the money you have coming in, what you need to spend on important bills, what you owe and anything else you are dealing with.

Our debt advice is always free and based on what help you need. Ready to find out more?

Can a DWP debt be written off?

This will not usually happen if DWP believe the debt is yours to repay.

You can dispute it if:

• You think the Tax Credit office made a mistake
• You think you were given incorrect information
• You think you were given incorrect advice

To get the debt written off:

• Contact DWP Debt Management straight away. Explain why you do not owe this money and share your reasons why
• If they still do not agree, ask for a ‘mandatory reconsideration’ if you think the DWP has made a mistake.

Ways to dispute the DWP debt:

There are different ways to do this

1. Write a message in your Universal Credit online account
2. Fill in a CRMR1 mandatory reconsideration request form on GOV.UK. Print and send it to the address on top of your decision letter
3. Write a letter to the DWP. Send it to the address on the decision letter
4. Call the number on the decision letter

Find out more about how to write off debt.

Can DWP Debt Management take money from my wages?

Yes. Money you owe for benefits or tax credit overpayments can be taken directly from your wages.

This is called a direct earnings attachment (DEA).

• There is no court order needed for this
• Your employer gets details of how much to take from your pay
• Payments go directly from your employer to the Department for Work & Pensions (DWP)
• The DWP should write to you before starting the DEA
• You may be able to avoid the DEA by agreeing payment instalments instead.

How long can DWP Debt Management chase me for a debt?

The standard time in which debts should be reclaimed by the DWP is six years. But it may be longer in some cases.

If you had a county court claim

You can put in a defence if they issue you a county court claim for a benefit overpayment older than six years. Seek legal advice for this.

Direct earnings attachment

A direct earnings attachment can be used to recover benefit overpayments at any time because they require no court action. Even after these debts are statute barred.

Can the DWP look at my bank account?

The DWP can look at your bank account and social media if it has reasonable grounds to suspect you might be involved in benefit fraud.

For example, they can request information from your bank if they do not think you were honest about your savings.

If you are struggling to deal with a DWP overpayment, you may need expert debt advice. Use our free online debt advice service to get debt help.