'I was left relying on food banks' says mum after DWP clawed back overpayments

Daily Mirror

17-07-2025

A charity has called on the Department for Work and Pensions to show more compassion and understanding when dealing with people who've had overpayments - often through no fault of their own
A mum-of-three has revealed how she was left reeling after being hit with a demand for £15,000 in benefits overpayments out of the blue.
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Tania, 55, from Yorkshire, says she had to use food banks after the Department for Work and Pension suddenly began docking £80 a month from what she got - with little explanation. That was 10 years ago and she says DWP has still not told her much she is left owing.
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Tania, who asked us not to use her surname, was thrown into panic after receiving a letter telling her she had received too much in working tax credits. She believes it may relate to a mix-up about the amount of time her partner at the time was living with her.
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Rather than discuss how much she could afford, she says the money was suddenly deducted from her benefits. "They just took what they wanted. I think it is disgraceful.
'I was surviving month to month. I was relying on food banks and family and friends. It was an horrendous time. Losing £80 a month was a huge amount of money for me. I was fearing homelessness, it was that bad.'
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Tania, who has bipolar, says was put off calling up to discuss the problem because of previous dealings. "I thought 'I can't face speaking to anyone there'. They would say 'this is just what it is'. I have always found them so aloof, they are so intimidating.'
She has since been moved onto Universal Credit, with the amount deducted coming down to £50 a month. Despite it being 10 years Tania claims she is still unaware of how much she supposedly still owes. She says it contrasts starkly with her energy and water suppliers, both of whom she was in debt to, but which have been willing to negotiate a repayment plan.
Tania's experience is echoed by a new report which says the government is more aggressive than banks and other firms when recovering debts.
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A charity founded by consumer champion Martin Lewis says the government uses a 'harsh' approach when clawing back benefits it claims people owe. What it calls 'sudden and severe' debt collection practices are causing 'serious needless financial hardship and distress for people in vulnerable circumstances', says the Money and Mental Health Policy Institute.
Its research found 1.1 million people across the UK owe the Department for Work and Pensions money that has been overpaid. It is most likely to involve Universal Credit and can have happen either due to DWP making a mistake or changes in a person's circumstances.
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According the charity, the DWP can directly deduct 15% of people's monthly Universal Credit payment if you have been overpaid benefits. In many cases this happens within a month of the DWP spotting the overpayment, it said. The sudden hit to people's income can have a big impact on their ability to make ends meet. And unlike banks or other companies owed money, the government is not required to proactively check when people can afford to repay.
It comes as HMRC and the DWP could get more debt collection powers via the Public Authorities (Fraud, Error and Recovery) Bill currently going through Parliament.
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The Money and Mental Health Policy Institute says what is happens is similar to that of the Carer's Allowance controversy. In that case, some carers were forced to pay back thousands of pounds after being overpaid for years, despite the government having an internal system that flags potential cases as they arise.
Helen Undy, chief executive of the Money and Mental Health Policy Institute, said: 'When people are paid more in Universal Credit than they are entitled to, it's often through no fault of their own, and sometimes the first they know of it is when the government takes sudden and brutal steps to claw those payments back. Many people we work with are already running out of money for food before the end of the month, suddenly taking £60 from what they have left plunges them into further financial hardship and needless distress. The government has pledged to overhaul how it reclaims Carer's Allowance, now it needs to do the same for how it collects Universal Credit overpayments.
'Above all, that means proactively giving people a real chance to negotiate a payment plan that they can actually afford, instead of just taking money out of people's income with barely any warning.
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'We'd also like to see better standards applied across all government debt collection. It cannot be right that the state is lagging far behind the standards that consumer creditors have to meet in treating people fairly and with respect if they fall behind on payments.'
A DWP spokesperson said: 'While we would urge people to report a change in circumstances to avoid falling into debt, we understand debts do occur and will always support those struggling with repayments to agree affordable plans. We have introduced a new Fair Repayment Rate, which caps debt repayments made in Universal Credit at 15%, allowing 1.2 million households to keep more of their Universal Credit.
Our new Fraud Bill will help us to identify overpayments at the earliest stage so we can help prevent people falling into debt, and to do so in a way that is fair and proportionate.'