Latest news with #DepartmentforWorkandPensions
North Wales Chronicle
9 hours ago
- Business
- North Wales Chronicle
DWP urgent changes needed says Martin Lewis charity
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% of someone's monthly universal credit payment if they have been overpaid benefits. For a single adult aged 25 and over, 15% 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. 🚨 NEW REPORT 🚨 The harsh way that the government treats people who have been overpaid benefits is causing serious financial hardship and distress. And people with severe mental illness are disproportionately affected. Read more in our new report: 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 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, said 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. If you are overpaid by even 1 penny per week, you are charged a week of which ever benefits you claim each time you're overpaid. The DWP should be more careful instead of trying to squeeze money out of people that they don't have 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.' Recommended reading: 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 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
9 hours ago
- Business
- Daily Mirror
'I was left relying on food banks' says mum after DWP clawed back overpayments
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. 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. 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. 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.' 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. 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. 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. 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. '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.'
Daily Mirror
10 hours ago
- Business
- Daily Mirror
DWP told to halt 'aggressive' moves to recover money benefits from claimants
The DWP has been warned it needs to halt "aggressive and punitive" moves to recover benefit overpayments from claimants, with the furore dubbed "just like" the Carer's Allowance scandal The Department for Work and Pensions (DWP) has received a stern warning about reclaiming funds from benefit recipients it has overcompensated. The DWP has been warned that the uproar is strikingly similar to last year's Carer's Allowance debacle. In the UK, approximately 1.1 million individuals are indebted to the DWP due to excess benefit payments. Typically, an overpayment is flagged by a daunting letter or an unexpected update in a universal credit account stating: "You have been paid more universal credit than you are entitled to. This will now be taken back." Upon discovering these overpayment blunders, which stem from the DWP's own errors, the department may resort to "sudden and severe" measures to recoup the funds, as highlighted by the Money and Mental Health Policy Institute, reports Birmingham Live. These methods include "aggressive and punitive" debt recovery strategies. Helen Undy, chief executive of MMHPI, criticised the state's approach, saying: "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." One affected individual shared their struggles with MMHPI: "Having money deducted from my benefits has made it difficult for me to make ends meet," and added: "Some days I have been not eating because I can't afford to, which is leaving my mental health in tatters." "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," said Undy. "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," Undy stated. "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."
Glasgow Times
11 hours ago
- Health
- Glasgow Times
48 medical conditions eligible for Attendance Allowance
Pensioners living with these 48 common health conditions such as arthritis, heart disease, or dementia could be missing out on thousands of pounds in financial support each year, experts have warned. The Department for Work and Pensions (DWP) recently revealed that nearly 1.7 million people over State Pension age are claiming Attendance Allowance, a tax-free benefit designed to help cover the extra costs of living with a long-term illness or disability. In Scotland, it's also called Pension Age Disability Payment. Despite the significant financial help on offer — up to £110.40 per week or £441.60 every four weeks — pension specialists say many people still don't realise they qualify. Money Saving Expert founder Martin Lewis has been campaigning to get more people to see if they are eligible. Important. Do you know (or are you) an ill or disabled person of state pension age? Up to 1.1m people are missing out on a NON-MEANS tested min £3,500 a year Attendance Allowance. Pls watch & spread word. Courtesy of @itvMLshow — Martin Lewis (@MartinSLewis) February 22, 2024 "For many older people who are ill or start to face mental or physical disability, life doesn't just get tougher, it gets costlier too," he says. "Add to that the fact people's conditions can make it more difficult to spend the time and energy needed to research possible help. That's why 18 months ago we launched our Attendance Allowance (AA) guide and awareness campaign, and successes have flooded in since. Yet it still remains massively underclaimed, with potentially a million eligible pensioners missing out (source: Policy in Practice). "So whether it's you or someone close to you who may qualify, take 2mins to read what the team and I have put below, starting with some inspiration on the domino effect Attendance Allowance can have (in this case for lower-income pensioners)." The list of conditions that qualify for Attendance Allowance includes 48 common illnesses and disorders. These range from arthritis, back pain and frailty to serious neurological conditions like Parkinson's and multiple sclerosis. Mental health conditions, visual and hearing impairments, and cognitive disorders such as dementia are also included. Spencer Churchill Claims Advice deals with this issue. Their spokesperson says: 'Conditions like arthritis, heart disease, dementia, and Parkinson's are among the most commonly supported under Attendance Allowance — yet too many older people assume they won't qualify or worry that having savings will disqualify them. That's simply not the case. 'We regularly speak with pensioners who've struggled in silence for years, not realising they were missing out on thousands of pounds annually. 'A successful claim for Attendance Allowance can be life-changing — easing financial pressure and helping people maintain independence in their own homes.' The list of conditions, according to Spencer Churchill Claims, includes: Arthritis Spondylosis Back Pain - Other / Precise Diagnosis not Specified Disease Of The Muscles, Bones or Joints Trauma to Limbs Visual Disorders and Diseases Hearing Disorders Heart Disease Respiratory Disorders and DiseasesAsthma Cystic Fibrosis Cerebrovascular Disease Peripheral Vascular Disease Epilepsy Neurological Diseases Multiple Sclerosis Parkinsons Motor Neurone Disease Chronic Pain Syndromes Diabetes Mellitus Metabolic Disease Traumatic Paraplegia Major Trauma Other than Traumatic/Paraplegia Learning Difficulties Psychosis Psychoneurosis Personality Disorder Dementia Behavioral Disorder Alcohol and Drug Abuse Hyperkinetic Syndrome Renal Disorders Inflammatory Bowel Disease Bowel and Stomach Disease Blood Disorders Haemophilia Multi System Disorders Multiple Allergy Syndrome Skin Disease Malignant Disease Haemodialysis Frailty AIDS Coronavirus covid-19 Viral disease - precise diagnosis not specified Tuberculosis Bacterial disease - precise diagnosis not specified Cognitive disorder (other) How to claim Is my pension too high for Attendance Allowance? Unlike many other benefits, Attendance Allowance is not means-tested, meaning it is available regardless of a person's income, savings, or assets. It also doesn't affect a person's State Pension, and claiming it may boost entitlement to other financial help, including Pension Credit, Housing Benefit, and Council Tax Reduction. This is a non-means-tested, tax-free benefit that can make a real difference to someone's quality of life. Whether you need help during the day, at night, or both — if your condition affects your ability to care for yourself, it's worth checking your eligibility. Many eligible people either don't apply or are put off by the lengthy claim form — but support is available through organisations like Citizens Advice, and the potential rewards are considerable.
Daily Record
11 hours ago
- Business
- Daily Record
People on maximum PIP could see payments rise to nearly £200 every week from next April
The September CPI figure published in October will determine the annual uprating for DWP disability benefits. Personal Independence Payment (PIP) - information The Department for Work and Pensions (DWP) recently announced plans to reform Personal Independence Payment (PIP) have been put on hold until a review into the current assessment process has been conducted, expected to be completed by next Autumn. However, DWP also confirmed that the disability benefit will continue to rise each year in line with the September inflation rate. This is due to be published in mid-October with the benefit uprating confirmed at the Autumn Budget. The latest Office for National Statistics (ONS) figures show that the Consumer Prices Index (CPI) inflation rate for June was 3.6 per cent. If the CPI inflation rate stays at 3.6 per cent, people on the highest awards of the daily living and mobility components of PIP would see payments rise from £187.45 per week to £194.15, an increase of £6.70. As payments are typically issued every four weeks this amounts to £776.60, a boost of £26.80. PIP or ADP is currently worth between £29.20 and £187.45 each week, some £116.80 or £749.80 every four-week pay period. An uprating of 3.6 per cent would see payments be worth between £30.25 and £194.15 every week, some £121.00 and £776.60 every four-week payment period. It's important to remember there are still three more CPI inflation rates to be announced by the ONS before we know for certain how much PIP, Attendance Allowance, Disability Living Allowance and Carer's Allowance will increase from April 2026. Being aware of the impact of CPI inflation rates now can help make it easier to understand the annual uprating process before the Autumn Budget. PIP payment rate predictions 2026/27 PIP would be paid at the following amounts per week under 3.6 per cent CPI uprating: Daily living Standard rate: £73.90 (£76.55) Enhanced rate: £110.40 (£114.35) Mobility Standard rate: £29.20 (£30.25) Enhanced rate: £77.05 (£79.80) The next ONS CPI inflation rate is due to be published on August 20. The latest figures from the Department for Work and Pensions (DWP) show there are now over 3.7 million people across Great Britain receiving additional financial support through PIP. Similar data published by Social Security Scotland indicates over 476,200 people are now receiving Adult Disability Payment (ADP), the devolved benefit which has replaced PIP north of the border. Many people may be unaware that PIP and ADP can provide support for over 530 health conditions. Both benefits could help people with daily living tasks or moving around, or both. However, it would not be beneficial to list all 536 conditions recorded by DWP during the PIP application process as an award for the disability benefit is determined by how a person's health condition affects their ability to perform daily living tasks such as cooking, washing, eating, dressing and engaging with other people in a safe and timely way. There are also awards to help if you have difficulty moving around. This means that every claim for PIP or ADP is unique for each applicant, which could also help people thinking about making a new claim to start the process. Below is a full overview of PIP and ADP, including the five most-claimed conditions and the main disabling conditions, as classified by the DWP. PIP cannot be backdated, but payments start from the date the claim was submitted, to cover the handling time at the DWP. Total number of categories, recorded by DWP: Disability category - 21 Disability Sub Group - 178 Disability - 536 Five most-claimed PIP health conditions The five most commonly recorded disabling conditions for claims under normal rules are: Psychiatric disorder - 39% of claims Musculoskeletal disease (general) - 19% of claims Neurological disease - 13% of claims Musculoskeletal disease (regional) - 12% of claims Respiratory disease - 4% of claims PIP and ADP can provide weekly financial support to people with additional costs due to a disability, long-term illness, or physical or mental health condition. Many people may be unaware that PIP and ADP can provide support for hundreds of health conditions. Both benefits could help people with daily living tasks or moving around, or both. Disabling conditions recorded by DWP These are the main disability categories, the umbrella term by which more than 530 other conditions fall under. This list is only an overview of conditions, disorders and diseases and how the DWP lists the main disabilities being claimed for. Haematological Disease Infectious disease Malignant disease Metabolic disease Psychiatric disorders Neurological disease Visual disease Hearing disorders Cardiovascular disease Gastrointestinal disease Diseases of the liver, gallbladder, biliary tract Skin disease Musculoskeletal disease (general) Musculoskeletal disease (regional) Autoimmune disease (connective tissue disorders) Genitourinary disease Endocrine disease Respiratory disease Multisystem and extremes of age Diseases of the immune system Unknown or missing Even though new claims for PIP have been replaced in Scotland by ADP, it shares most of the same eligibility criteria. Full guidance on ADP can be found on the website here. Who might be eligible for PIP or ADP? To be eligible for PIP or ADP, you must have a health condition or disability where you: have had difficulties with daily living or getting around (or both) for 3 months expect these difficulties to continue for at least 9 months You usually need to have lived in the UK for at least two of the last three years and be in the country when you apply. In addition to what we have outlined above, if you get or need help with any of the following because of your condition, you should consider applying for PIP or ADP. preparing, cooking or eating food managing your medication washing, bathing or using the toilet dressing and undressing engaging and communicating with other people reading and understanding written information making decisions about money planning a journey or following a route moving around There are different rules if you are terminally ill, you will find these on the website here. DWP or Social Security Scotland will assess how difficult you find daily living and mobility tasks. For each task they will look at: whether you can do it safely how long it takes you how often your condition affects this activity whether you need help to do it, from a person or using extra equipment How are PIP and ADP paid? PIP and ADP are usually paid every four weeks unless you are terminally ill, in which case it is paid weekly. It will be paid directly into your bank, building society or credit union account. ADP is paid at the same rates as PIP. PIP and ADP payment rates You will need an assessment to work out the level of financial help you will receive and your rate will be regularly reviewed to make sure you are getting the right support. Payments are made every four weeks. PIP is made up of two components: Daily living Mobility Whether you get one or both of these and how much depends on how severely your condition affects you. For the weekly rates, see the guide already mentioned in this article. How you are assessed You will be assessed by an independent healthcare professional to help the DWP determine the level of financial support, if any, you need, for PIP. Face-to-face consultations for health-related benefits are offered alongside video calls, telephone and paper-based assessments - it's important to be aware that the health professional and DWP determine which type of assessment is best suited for each claimant. You can find out more about DWP PIP assessments here. Adult Disability Payment assessments will not involve face-to-face assessments, unless this is preferred by the claimant - find out more about the changes here. How do you make a claim for PIP? You can make a new claim by contacting the DWP, you will find all the information you need to apply on the website here. Before you call, you will need: your contact details your date of birth your National Insurance number - this is on letters about tax, pensions and benefits your bank or building society account number and sort code your doctor or health worker's name, address and telephone number dates and addresses for any time you've spent abroad, in a care home or hospital How to apply for ADP People can apply for ADP, over the phone, by post or in-person. To find out more or apply, visit the dedicated pages on here or call Social Security Scotland on 0800 182 2222.
