Customer news Money Advice

Challenging an £8,000 Universal Credit overpayment

With the rising cost of living, we know how important it is that our customers receive the right financial support. Our money advice and benefits team are here to help customers navigate the benefits system and make sure they’re getting what they’re entitled to.

Here’s how we recently supported one of our customers through a particularly difficult situation.

L had been receiving Universal Credit while studying and, due to her Obsessive Compulsive Disorder, made sure to provide the Department for Work and Pensions (DWP) with all the right information—several times and in different ways. But two years later, she was told she’d been overpaid more than £8,000 because her student income hadn’t been taken into account.

Understandably, this caused a lot of stress. L knew she’d done everything she could to be clear and accurate, so she decided to challenge the decision. She submitted a Mandatory Reconsideration, made a formal complaint, and requested a waiver of the debt. With support from the Public Law Project (PLP) and our money advice and benefits team, L’s case was taken all the way to a judicial review pre-action letter. Eventually, the DWP agreed to waive the full amount.

We’re proud to have supported L through this process and to have worked with PLP to make sure her voice was heard. PLP is now using stories like L’s to campaign for fairer treatment of official error overpayments, and we’re continuing to support their work by sharing evidence with MPs.

If you’re worried about your benefits or think you might have been affected by an error, our team is here to help.