Benefit mistakes driving people into poverty

Today our director of external affairs, Sebrina McCullough, is talking on BBC Radio 4’s Money Box programme about how administrative errors with benefit payments are driving thousands of our customers deeper into debt.

The scale of the problem

Nearly one in three (30%) of the people we’ve helped over the past 12 months owe money to the Department for Work and Pensions (DWP). Of those, almost 10,000 are having to pay back benefit overpayments that occurred due to administrative errors completely beyond their control.

It’s estimated that somewhere between £400m and £600m is overpaid each year due to this type of mistake. Although this is no doubt a small percentage overall for the government, the impact on individuals and families is huge.

Driving people into poverty

When someone is paid too much in benefits, DWP often recoups the overpayment by reducing that person’s award for the current year. As a result, people are struggling to pay for childcare, heat their homes and cover the cost of essentials like food.

The rate at which these errors are happening is increasing due to the managed migration of people from benefits that are being phased out onto universal credit.

What we’re calling for

This current state of affairs can’t be allowed to continue. We want:

• better communication and collection practices for benefit overpayment cases that are the result of official error to make sure people aren’t pushed deeper into poverty through no fault of their own
• a new hotline for debt advisers to contact DWP on behalf of claimants so that benefit issues don’t delay people getting the help they need
• a simplified benefit system so people don’t miss out on support they’re entitled to – currently, an estimated £23bn goes unclaimed because it is overly complicated and difficult to navigate

Worried about repaying benefit overpayments?

If you’re struggling with benefit overpayments, we’re here to advise you. Get advice online or over the phone.

Or get more information in our guide on benefit overpayments.