Latest news with #DWP
Daily Record
7 minutes ago
- Business
- Daily Record
DWP boss defends welfare reform changes after PIP plans put on hold
Work and Pensions Secretary Liz Kendall acknowledged it had been a 'bumpy ride when she appeared before the Work and Pensions Committee on Wednesday. Reasons your Universal Credit may be cut by DWP Liz Kendall insisted the UK Government's welfare reforms were in 'the right place' now after she was forced to scrap most of the planned changes in the face of a Labour revolt. The Universal Credit Bill cleared the Commons after elements to restrict eligibility to PIP were scrapped, with any changes postponed until after a review led by disability minister Sir Stephen Timms in conjunction with disabled people. The Work and Pensions Secretary appeared before the Work and Pensions Committee on Wednesday and acknowledged it had been a 'bumpy ride' but the review into the Personal Independence Payment (PIP) would now be able to take a proper look at the system in conjunction with disabled people. Ms Kendall insisted the reforms had not been motivated by the Treasury's desire to cut spending but were driven by a desire to end a situation where people became dependent on benefits rather than working. Ms Kendall told the cross-party group of MPS: 'I know, always, how anxious people are when they hear about proposed changes in the benefits system. 'I think we've ended up in the right place now and I think we have a really positive story going forward about how we will work with disabled people, the organisations that represent them and other experts to make sure we get a system that's fit for the future.' She denied the proposals were motivated by the almost £5 billion they were due to save. Ms Kendall said: 'I've never started with pound signs or spreadsheets. I've always started with what I believe can help people with long-term health conditions and disabled people build a better life for themselves and our reforms are based on helping those who can work to do so, instead of writing them off and then denying them any support.' She added that her department 'ends up picking up the pieces of the problems that are deep-rooted from many other government areas'. The DWP boss continued: 'Poor health, poor opportunities, low skills, not enough jobs - those are the problems we have to tackle together.' Her department was 'at the sharp end of it' and after 'admittedly, a bumpy ride over the welfare legislation' the UK Government has to 'start shifting resources into the things that really help create better lives for people'. 'We are spending, I believe, too much on the costs of failure and not enough on the better health, better jobs, better skills that we need,' she said. 'That is extremely difficult to shift, because people rely on those benefits, and they've built their lives around them.' But, she added: 'Benefits alone is not the solution to a better life.'
Daily Record
37 minutes ago
- Business
- Daily Record
DWP urged to review ‘harsh treatment' of people who have been overpaid benefits
A charity set up by Martin Lewis is urging the DWP to review the repayment process for claimants and take individual income and outgoings into account. Reasons your Universal Credit may be cut by DWP A charity set up by consumer champion Martin Lewis says the approach to collecting benefits overpayments should be urgently reformed. The Money and Mental Health Policy Institute said some people are being subjected to sudden and severe debt collection practices, causing financial hardship and distress for people in vulnerable circumstances. Benefits overpayments may happen when the Department for Work and Pensions (DWP) pays more in benefits such as Universal Credit than someone is entitled to, perhaps due to changes in someone's circumstances or an error. The charity said that overpayments can accumulate for months unbeknown to recipients, but the DWP can rapidly take payment within weeks of identifying an issue. It added that the DWP can directly deduct 15 per cent of someone's monthly Universal Credit payment if they have been overpaid benefits. For a single adult aged 25 and over, 15 per cent of a monthly Universal Credit payment can amount to £60-a-month - causing a significant income shock for people who have a low income - the charity argued. It contrasted the situation with commercial lenders, who would go through the courts, a process which could take months, to forcibly take money from someone's income. The charity said some people may find the messaging that benefit money is going to be recouped from them alarming, with people receiving messages on their online accounts stating that they have been paid more in Universal Credit than they were entitled to and this will now be taken back. It said that while people can call the UK Government to try to negotiate an affordable plan, people may not clearly understand this from the messaging. Meanwhile, consumer creditors such as banks, credit card companies, water companies and energy companies are required by regulation to engage extensively with people who owe money, Money and Mental Health said. The charity, which carried out research into the issue, reports one person had said: 'Having money deducted from my benefits has made it difficult for me to make ends meet and some days I have been not eating because I can't afford to, which is leaving my mental health in tatters.' It also highlighted that the DWP is gaining more powers via the Public Authorities (Fraud, Error and Recovery) Bill currently passing through Parliament. In particular, the DWP should proactively assess how much people can afford to repay, the charity said. It suggested that, for example, the DWP could mirror the approach taken by consumer creditors in assessing someone's income and essential outgoings, and then giving people a 'real chance' to negotiate an affordable repayment plan. The charity also said that debt management standards guidance on how to protect people in vulnerable circumstances from harm, including people with mental health problems, should be strengthened for all government departments. Helen Undy, chief executive of the Money and Mental Health Policy Institute, said: 'The Government's harsh treatment of people who've been overpaid benefits is reminiscent of the Carers' Allowance scandal. '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 carers' 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. '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. '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.' Agents within the Department's debt management team refer customers to the Money Advice Network who offer free, impartial and independent debt advice. The DWP also said it remains committed to the Treasury's Breathing Space policy, which provides those with problem debt the right to legal protections from creditor action for a set period to enable them to receive debt advice and enter an appropriate debt solution.
Daily Mirror
an hour ago
- Business
- Daily Mirror
Urgent new DWP alert as some have £60 a month taken from their benefits
The Money and Mental Health Policy Institute, which was set up by Martin Lewis, said some people are being subjected to sudden and severe debt collection practices The Money and Mental Health Policy Institute, a charity established by consumer advocate Martin Lewis, has called for an urgent reform in the method of collecting benefits overpayments. The charity highlighted that some individuals are being subjected to abrupt and harsh debt collection practices, leading to financial strain and distress for those in vulnerable situations. Overpayment of benefits can occur when the Department for Work and Pensions (DWP) disburses more in benefits, such as universal credit, than a person is entitled to, possibly due to changes in their circumstances or an error. The charity pointed out that these overpayments can accumulate for months without the recipients' knowledge, yet the DWP can swiftly demand repayment within weeks of identifying an issue. Furthermore, the charity noted that the DWP has the authority to directly deduct 15% from someone's monthly universal credit payment if they have been overpaid benefits. For a single adult aged 25 and above, this could equate to a deduction of £60 a month – a significant income shock for those on a low income, the charity argued. The charity contrasted this with the approach of commercial lenders, who would typically engage in a lengthy court process to seize funds from an individual's income. The organisation expressed concern that some individuals might find it distressing to receive notifications on their online accounts informing them that they have been overpaid in universal credit and that the excess will be reclaimed. It highlighted that while it is possible to contact the Government to arrange a manageable repayment plan, the current messaging may not make this option clear to recipients. In contrast, consumer creditors like banks, credit card firms, water and energy providers are legally obliged to thoroughly communicate with debtors, according to Money and Mental Health. The charity, which investigated the matter, shared a troubling account from one person: "Having money deducted from my benefits has made it difficult for me to make ends meet and some days I have been not eating because I can't afford to, which is leaving my mental health in tatters." The report also pointed out that the DWP is set to gain more authority through the Public Authorities (Fraud, Error and Recovery) Bill currently making its way through Parliament. The charity emphasised that the DWP ought to proactively determine what individuals can realistically afford to repay. It proposed that the DWP could adopt practices similar to those of consumer creditors by evaluating a person's income and necessary expenses, thereby offering individuals a genuine opportunity to agree on an affordable repayment schedule. Moreover, the charity called for enhanced debt management standards guidance to better shield vulnerable individuals, including those with mental health issues, from harm across all government departments. Helen Undy, the chief executive of the Money and Mental Health Policy Institute, criticised the Government's approach, stating: "The Government's harsh treatment of people who've been overpaid benefits is reminiscent of the carers' allowance scandal. "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 carers' 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. "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 responded: "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. 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." The Department's debt management team directs customers to the Money Advice Network for free, impartial, and independent debt advice. The DWP also upholds the Treasury's Breathing Space policy, which offers legal protections from creditor action for a set period to those with problem debt, allowing them to seek debt advice and find a suitable debt solution.
BBC News
2 hours ago
- Business
- BBC News
Food vouchers for North Northamptonshire paused due to demand
One-off supermarket vouchers have been paused by a council due to a high demand in Northamptonshire Council said they had paused new applications for a three- week period due to a large number of people applying since 23 families, pensioners, and people with disabilities were able to apply, with the amount dependent on the size of the household. Gregory Wilcox, Reform UK councillor and executive member for communities at the authority, said: "The Household Support Fund (HSF) applications are currently paused due to high demand and to enable our staff to work through the existing waiting list." The vouchers were funded by the Department of Work and Pensions (DWP) and were available due to the seventh tranche of the HSF.A single person could apply for a £150 voucher, a two-person household £260 and a household with three people or more £320. It comes as prices rose by more than expected in the year to June, pushing inflation to 3.6% in UK, the highest it has been since January prices for food and clothing, air and rail fares - and a lower drop in fuel prices than this time last year - contributed to higher inflation, official figures Wilcox added: "This means new applications may not be accepted immediately while the authority processes existing requests and manage their allocated funds."The authority said residents who had applied for the "wider essentials support" since 23 June did not need to apply Northamptonshire Council said applications were expected to take two months to process and would be dealt with in order of the date they were were due to re-open on 4 August. Follow Northamptonshire news on BBC Sounds, Facebook, Instagram and X.
Daily Mirror
4 hours ago
- Business
- Daily Mirror
DWP says it will review Universal Credit, PIP and other benefit claims
DWP has published a new report The Department for Work and Pensions (DWP) has published its latest 'Fraud and error in the benefit system' report, detailing the estimated mispayments for the financial year 2024/25 through overpayments or underpayments. It has emerged that claimants were overpaid by an eye-watering £9.5 billion, which is 3.3 per cent of the total benefits expenditure. This figure has seen a slight dip from the previous year's £9.7 billion, or 3.6 per cent. Meanwhile, the rate of benefit underpayments has stubbornly remained static at £1.2 billion, or 0.4 per cent. Eligibility for DWP benefits hinges on meeting specific criteria, with the amount received varying according to individual circumstances, as reported by the Daily Record. The DWP said: "Sometimes people tell us the wrong information or do not tell us when their circumstances change. Reporting accurate information and providing evidence may change the amount of benefit people are eligible for and in some circumstances, they may be eligible for more money. "However, we cannot calculate the correct amount unless people tell us accurately about their circumstances. This means that people are not eligible for increases in the amount of money they receive until we have the correct information." DWP fraud and error review for the 2025/26 financial year The DWP has confirmed that it will be assessing sample cases from six benefits for 'unfulfilled eligibility' throughout the current financial year. These include: Universal Credit Housing Benefit (pension age, both passported and non-passported cases) Pension Credit State Pension Personal Independence Payment Disability Living Allowance for children Definitions of Fraud, Claimant Error and Official Error Fraud Claims where all three of the following conditions are met: the conditions for receipt of benefit, or the rate of benefit in payment, are not being met the claimant can reasonably be expected to be aware of the effect on their entitlement benefit payment stops or reduces as a result of the claim review Claimant Error (unfulfilled eligibility) An overpayment has occurred when the claimant has provided inaccurate or incomplete information, or failed to report a change in their circumstances, but there is no evidence of fraudulent intent on the part of the claimant. Official Error The benefit has been incorrectly paid due to a failure to act, a delay or an incorrect assessment by the DWP, a local authority or HM Revenue and Customs (HMRC), to which no one outside of that department has significantly contributed. The DWP report also emphasised that total spending on benefits rose from £266.2bn in 2023/24 to £292.2bn last year. This was an increase of £26.0bn (9.8%) which was primarily due to: State Pension - spending increasing from £123.9bn to £142.0bn Universal Credit spending increasing from £51.9bn to £65.3bn Personal Independence Payment (PIP) spending increasing from £21.6bn to £25.8bn However, the DWP stated that these increases are partially offset by a reduction of £10.2bn (100.0%) in Cost of Living Payments expenditure. The DWP plans to publish the findings for 2025/26 in May of next year.
