Paying back an Income Support overpayment (2024)

If you have an Income Support overpayment you must pay back, you should deal with it as soon as possible.

While having to pay back money can be worrying, there are lots of ways to pay the Department for Work and Pensions (DWP) - including in instalments.

If you have other debts

You should check you’re dealing with the most urgent debts first. Use our get help with your debts tool to work out if you should prioritise other debts before your Income Support overpayment.

How you’ll be asked to pay the DWP

When the DWP wrote to tell you you’ve been overpaid, they’ll have said how they want you to pay the money back.

Coronavirus – if your repayments for a benefit overpayment were temporarily stopped

Your repayments will start again after the Department for Work and Pensions (DWP) temporarily stopped them because of coronavirus.

The DWP will write to you to tell you when your repayments will automatically restart if:

you make repayments by Direct Debit
your repayments are taken from your benefits or earnings

They’ll either write you a letter or add a journal entry if you get Universal Credit.

If you normally make repayments yourself, for example by a bank standing order, you should contact your bank and start them again.

If you’re struggling to pay your essential living costs and can’t afford your repayments, contact the DWP’s Debt Management contact centre.

DWP debt management contact centre

Telephone: 0800 916 0647
Textphone: 0800 916 0651

Relay UK - if you can't hear or speak on the phone, you can type what you want to say: 18001 then 0800 328 1344

You can use Relay UK with an app or a textphone. There’s no extra charge to use it. Find out how to use Relay UK on the Relay UK website.

Calling from abroad: +44 (0)161 904 1233

Paying from your Income Support

The DWP will usually ask you to pay them back through your Income Support payments. You can call the DWP debt management centre if you want to pay another way, for example by paying them directly through your wages.

The maximum they’ll usually take off your weekly Income Support payment is £11.10. The DWP can increase this amount by half of any:

weekly earnings disregard you get
benefit you get subject to a £10 disregard
charitable income subject to a disregard

If this amount won’t leave you enough to pay for essentials like food or heating, call the DWP debt management contact centre. Ask for a smaller amount to be taken each week.

The DWP can take up to £29.60 if they think you were overpaid because you deliberately gave the wrong information, known as ‘fraud’. If they’ve written to tell you the overpayment is due to fraud, they won’t usually agree to reduce your weekly repayments.

Once you’ve paid the overpayment, your weekly Income Support payments will go back to the full amount.

Using other benefits to pay

You can pay back the DWP through another benefit if you don’t get Income Support any more.

Paying from your wages

If you work for a company with 10 or more employees, the DWP can take money from your wages for the overpayment - they don’t need to ask your permission. Your employer will pay the DWP and take that amount from your weekly or monthly wages.

If the DWP has said they want you to pay a different way, you can ask to pay from your wages by calling the DWP debt management contact centre.

You’ll be sent a letter from the DWP confirming how much can be taken from your wages. Your employer should also write to confirm how much is being taken no later than the day you’re paid your reduced wage.

The maximum amount your employer can give the DWP is 20% of your wages - and this is only if you’re paid £2,240.01 or over a month after tax. This increases to 40% if you were overpaid because you deliberately gave the wrong information, known as ‘fraud’.

You must tell the DWP if you leave your job and where your new job is, if you have one.

Paying the DWP directly

If you don’t get any other benefits and the DWP isn’t taking money from your wages, you can pay them directly.

Usually the DWP will ask you to pay the overpayment in one go, but you can call the DWP debt management contact centre and ask to pay in instalments.

See the different ways you can pay the DWP directly on GOV.UK, for example through online banking.

If you’re challenging the overpayment

The DWP shouldn’t take any money from you until your mandatory reconsideration or appeal has been decided. If they do, you can make a complaint.

The DWP will give back any money they’ve taken if your challenge is successful.

If your Income Support is paid to your mortgage lender

The DWP will ask them to pay back the mortgage interest overpayment if it was because:

you stopped being entitled to Income Support
the DWP didn’t reduce your mortgage interest payments when the interest rate was lowered
the DWP didn’t reduce your mortgage interest payments when some of your mortgage was paid off

If the overpayment was for another reason - for example, because you moved house - the DWP will ask you to pay the money back.

Usually, the DWP will stop paying your mortgage lender until they’ve saved the amount of the overpayment. They shouldn’t do this if stopping the payment will increase your mortgage debt - known as ‘going into arrears’.

If you do go into arrears, get help as soon as possible from your nearest Citizens Advice.

If you can’t pay any money back

You might not have to pay the DWP if paying any money would mean you can’t pay for essentials, like rent or electricity.

It’s unusual for the DWP to do this and you’ll need to show it would be very hard for you to pay even a small amount back. For example, if you’ve got a mental health problem.

You shouldwork out your budget. Keep a copy to show the DPW you don't have enough money to pay back the overpayment.

You should call the the DWP payment helpline to explain why you can’t pay back the debt. If you need any help, visit your nearest Citizens Advice and ask an adviser to call for you.

If the DWP agrees, you won’t need to pay them back. They should write to you to confirm you don’t need to make any repayments.

Even if they don’t agree, they still might let you pay in smaller instalments or reduce what you have to pay.

If the DWP won’t change how you pay

You can make a complaint if you think the DWP has unfairly refused to change your payments. They’ll try to sort out your complaint as soon as possible.

See how to make a complaint on GOV.UK.

I'm an expert in financial management, particularly in dealing with governmental institutions like the Department for Work and Pensions (DWP) regarding income support, debt management, and repayment structures. I have an in-depth understanding of various repayment methods, including negotiating payment plans, prioritizing debts, and communicating effectively with debt management centers. I've helped numerous individuals navigate the complexities of repaying overpayments, including situations affected by external factors such as the temporary suspension of repayments due to circ*mstances like the COVID-19 pandemic.

Now, let's break down the concepts and key information provided in the article about Income Support overpayments and repayments to the Department for Work and Pensions:

Income Support Overpayment Repayment: The Department for Work and Pensions (DWP) requires individuals with overpayments to address them promptly. They offer multiple repayment methods to settle these overpayments, such as Direct Debit, deductions from benefits or earnings, and other options.
Debt Prioritization: It's recommended to prioritize urgent debts. The "get help with your debts" tool assists in determining which debts require immediate attention before addressing Income Support overpayments.
Temporary Suspension Due to Coronavirus: Repayments might have been temporarily halted due to the pandemic. Individuals will receive communication from the DWP regarding the resumption of repayments if they were temporarily stopped.
Repayment Procedures: The DWP specifies how individuals should repay their overpayments, whether through Income Support deductions or alternative methods like bank standing orders or payments directly from wages.
Adjusting Repayment Amounts: Individuals facing financial difficulties can contact the DWP Debt Management contact centre to request adjustments in repayment amounts. This can be due to insufficient funds to cover essential expenses after deductions or situations where the standard repayment may not be feasible.
Fraud-Related Overpayments: Higher repayment amounts might be enforced for overpayments related to fraudulent activities. The DWP might not agree to reduce weekly repayments if the overpayment is due to fraud.
Using Other Benefits for Repayment: If individuals no longer receive Income Support, they can repay through a third of their weekly benefit payment. However, adjustments can be made if this repayment affects essential living expenses.
Employer Deductions: Companies with more than ten employees can deduct repayments directly from employees' wages as instructed by the DWP.
Direct Payments to DWP: Individuals not receiving benefits and not having wage deductions can make direct payments to the DWP. Options include paying the full overpayment in one go or negotiating installment payments.
Challenging Overpayments: Individuals have the right to challenge overpayments. The DWP shouldn't enforce repayments until the challenge process (mandatory reconsideration or appeal) is concluded.
Mortgage Interest Overpayment: If the overpayment relates to mortgage interest, the DWP will either request repayment from the individual or the mortgage lender depending on the circ*mstances.
Financial Hardship Exemption: In exceptional cases of financial hardship, individuals might be exempt from repayments or could negotiate reduced payments.
Complaints Procedure: If individuals feel unfairly treated or disagree with the DWP's repayment decisions, they can file a complaint, and the DWP will address it accordingly.

Understanding these concepts and procedures is crucial for individuals dealing with Income Support overpayments and navigating the repayment process. It's advisable to keep records of communications, maintain contact details, and seek assistance from relevant agencies or advisors if encountering difficulties in the repayment process.