If you receive benefits from the UK’s Department for Work and Pensions (DWP), even small errors can cost you dearly. A wrong tick on a form, forgetting to report a pay rise, or missing a document deadline can lead to overpayments—sometimes of thousands of pounds. Even if the mistake wasn’t your fault, you could still be told to repay the money.
This guide lays out the most common DWP benefit mistakes, how they happen, how to avoid them, and what to do if you’re already facing an overpayment notice.
Over Payments
Let’s start with the numbers. Between April 2023 and March 2024, the DWP overpaid around £9.7 billion in benefits—3.7% of the total benefit budget. Universal Credit made up the bulk of this, with a 12.4% overpayment rate worth £6.46 billion.
| Category | Value |
|---|---|
| Total Overpayments (2023–24) | £9.7 billion |
| Universal Credit Overpayments | £6.46 billion (12.4%) |
| Carer’s Allowance Cases (2024) | 15,000+ flagged cases |
| State Pension Underpayments | £804 million (130,000 cases) |
The key thing to know is that overpayments can happen for many reasons—some your fault, some not—but DWP often asks for the money back either way.
Causes
Making a mistake on a form, like underreporting your rent or income, can lead to incorrect benefit amounts.
Not Reporting Changes
If you move in with a partner, start a new job, or work more hours, DWP needs to know. Not telling them quickly could trigger an overpayment.
Missing Evidence Deadlines
When DWP asks for proof of ID, wages, or rent, missing the deadline or providing incomplete info can lead them to estimate your entitlement—and they often estimate high.
Ticking the Wrong Box
With online claims, small clicks matter. For example, saying “no” to a question about having a partner when the answer is “yes” could misclassify your claim.
Exceeding Income Limits
Carer’s Allowance, in particular, has strict income limits. Earning even £1 over without telling DWP can mean repaying every penny of the benefit.
DWP Mistakes
Yes, they make mistakes too. And in 2023/24 alone, more than 686,000 overpayment cases were down to DWP admin errors. They might still ask you to repay the money, but you can apply for a waiver.
Examples
- Carer’s Allowance: One carer accidentally earned slightly over the threshold for a few months and was told to repay more than £6,000.
- State Pension: A woman in her 80s discovered she’d been underpaid nearly £20,000 due to a DWP error spanning 15 years.
These stories are more common than you might think and highlight why being alert is so important.
Rights
If you’ve been told to repay money, don’t panic—you have rights.
- Mandatory Reconsideration: Ask DWP to review their decision.
- Appeal: If the reconsideration fails, take your case to a tribunal.
- Waiver Application: If the overpayment wasn’t your fault or repaying would cause hardship, apply to have it written off.
Steps
Here’s how to protect yourself:
Step 1
Double-check your answers. Ask for help from Citizens Advice if you’re unsure.
Step 2
New job? Partner moved in? Report changes online or via phone immediately.
Step 3
Keep copies of letters, emails, forms, payslips—everything. It’ll save you if anything is questioned.
Step 4
Websites like Turn2Us or Entitledto help you check what you should be receiving based on your details.
Step 5
If DWP contacts you about a change or overpayment, don’t ignore it. Contact them and get advice if needed.
FAQs
Can I be asked to repay DWP errors?
Yes, even if it wasn’t your fault.
What if I can’t afford to repay?
You can apply for a waiver due to hardship.
How do I dispute a DWP overpayment?
Request a Mandatory Reconsideration within 1 month.
What’s the main cause of DWP overpayments?
Failure to report changes in income or circumstances.
Can DWP take money from future benefits?
Yes, they can reduce future payments to recover debt.
