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DWP restarts recovery of benefit related overpayments and social fund loans

07 July 2020

The DWP has announced that it has restarted recovery of benefit related overpayments and social fund loans from 6 July.

In April, in response to the COVID-19 outbreak, the DWP temporarily paused the recovery of benefit overpayments, for three months.

These included Housing Benefit overpayments and Social Fund Loans.

The Department said that the change would enable many benefit claimants will see an increase in the amount of money they receive in benefits during the outbreak.

In addition, it  would also allow it to move a significant number of  staff to front line roles so it could focus on getting money to those who need support, following a significant increase Universal Credit claims.

However, the DWP said today it was recommencing debt recovery from 6 July, adding that:

“Customers who previously paid by Direct Debit will receive a letter in advance of payments recommencing, giving details of the new request Debt Management has sent to the bank.

We will also write to all customers who previously repaid through deductions from wages, giving them the opportunity to set up an alternative repayment plan.

All other customers will be notified by letter or Universal Credit journal entries, that are issued when deductions are taken from benefit, or repayment of a debt is due to start.

Note: The DWP says that “customers who are experiencing real financial hardship can request deferral of repayments by contacting the Debt Management line on 0800 916 0647.”