Many people who claim benefits from the Department for Work and Pensions (DWP) have collectively been underpaid approximately £2.6 billion, with new data showing underpayments of 1.2% in the 2021/22 financial year.
However, many other claimants have also been overpaid — with the UK Government department reportedly overpaying around £8.6 billion in the 2021/22 financial year.
There are a number of reasons for these underpayments and overpayments, including errors made by the DWP, councils, HMRC, as well as claimant mistakes and fraud.
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A number of benefits have been affected by these errors, such as Universal Credit and Pension Credit.
As reported by The Mirror, here is everything you need to know about benefit underpayments, and what to do if you have been affected.
Which benefits were underpaid?
The DWP reportedly underpaid around £410 million in Universal Credit, though also overpaid £5.9 billion of the benefit.
It underpaid approximately £540 million of the State Pension, while also overpaying around £110 million.
Additionally, Housing Benefit was overpaid by £950 million and unpaid by £210 million, while Pension Credit was overpaid by £350 million and underpaid by £110 million.
What happens if you were underpaid?
In most cases, the DWP will pick up on the mistake and issue you the money you are owed as a single payment, but if you believe you have been underpaid and have not been contacted or had the issue corrected, you should get in touch with the UK Government department.
Those who think their Universal Credit was underpaid should call the helpline on 0800 328 5644 or use their online account.
If you believe you have been underpaid regarding your State Pension, you should call the helpline on 0800 731 0469.
What happens if you were overpaid?
If you were paid too much, the DWP can and will collect the extra money.
In most cases, if they paid you too much Universal Credit, it will deduct a certain amount — usually 15% to 25% — from all future payments until the amount is recovered.
However, you may ask if you can keep the extra money — though they may not say yes.
This is called "exercising their discretion not to recover an overpayment" and is down to the discretion of the DWP.
