Errors by the Department for Work and Pension means thousands of people on benefits were underpaid to a combined total of £2.6billion. The Goverment department said it underpaid 1.2% of benefits in the year to April 2022 so it's worth checking if you are owed some money.
However, while some people did not get what they were suppposed to get, some claimants got more than they were entitled to and those £8.6bn overpayments will need to be paid back.
Underpayments and overpayments can happen due to mistakes by the DWP, local authorities, HMRC, fraud and claimants making errors, MirrorOnline reports. Details of what were underpaid and what to do if you were underpaid are below.
Which benefits were underpaid?
The Department for Work and Pension said it underpaid claimants a total of £410m in the year to April 2022, but overpayments were far higher at £5.9bn. It underpaid state pensioners £540million, but also overpaid £110million.
Housing Benefit was overpaid by £950million, but underpaid by £210million. Pension Credit was overpaid by £350million, but there were £100million of underpayments too.
What happens if you are underpaid benefits?
The DWP would usually spot the problem and pay you what you are owed as a lump sum. But if you think you have been underpaid and the DWP has not contacted you or corrected the issue, you can contact them to enquire.
For example, Universal Credit claimants can call a helpline on 0800 328 5644 or use their online account. If you think you have not had the correct state pension amount, you should contact the Pensions Service arm of the DWP directly on 0800 731 0469, but be aware that the lines are only open from 9.30am to 3.30pm Monday to Friday.
What happens if you are overpaid benefits?
If the Department for Work and Pensions (DWP) has paid you too much Universal Credit, it will take back the money from your future payments. Normally this is in the region of a 15% to 25% reduction each month.
You can ask if they'll let you not pay back the overpayment - but they don't need to say yes. This is called "exercising their discretion not to recover an overpayment" and is down to the discretion of the DWP.
DWP has been approached for comment.
