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DWP Debt Management : Department of Work and Pensions

The DWP Debt Management scheme is part of the Department of Work and Pensions (DWP). Their role is to recover social security benefits that have been overpaid. The advances such as payments on accounts also include short term benefit advances. These are payments such as the Housing Benefit overpayments and Tax Credit that one needs to repay.

So, if one needs to recover benefit payments from somewhere then there are customer services and recovering agencies to help you with this. There are many parts of this DWP scheme apart from Debt Management like Disability & Care Service and Jobcentre Plus & the Pensions, etc. 

DWP Debt Management Customer Services 

Each and every part of the DWP scheme offers services to different groups of people according to their requirement. However, the entire department is looking to meet a single group of customers standards. They include services such as the right treatment of the client and their problems, accurate on-time results and easy access to information.

There are many DWP Debt Management customer services that can provide you with help regarding this. These services include recovering the following overdue:

  • The DWP Debt Management scheme is available for you to recover Social Funds that are outstanding.
  • They also help you recover advances such as payments on account that also includes short term benefit advances.
  • Apart from these, they also help recover Housing Benefit overpayments and Tax Credit that is not paid. 
  • Overpaid benefits from the properties of deceased or late customers are also recovered by them. They do so through a team of Recovery from Estates. 
  • The DWP debt management also helps recover Social Security benefit during certain compensation cases. They include the NHS costs in some injury cases from the Compensation Recovery Unit.

The services offered: 

Not only do these customer services or agencies recover the benefits for you but also provide ethical services. The ethical services include treating the client and his problems in a fair and respectable way. 

For example, they will explain the situations accordingly and in a way so that their client can understand. Of course, the personal information that the client provides is kept 100% confidential. 

How to pay Benefit Overpayments?

It totally depends on whether you still receive the benefits or not, before choosing to pay back the overpayment. Because if you are not receiving any benefit then you will obviously not be able to pay back the debt. 

But, if you are, then the amount that you get for yourself will now be reduced. This will go on till the time you have paid back the money. However, if you feel that you have been charged too much for repayment, then you can contact your DWP Debt Management centre. 

Now, if you no longer receive benefits then you will still need to pay back the overpayment. You will receive a letter of notice mentioning how much you owe to the DWP Debt Management. In case, you cannot repay the debt amount in full you have to get in touch with the DWP service provider again. They will negotiate with you and come up with some other arrangement for a payment plan. 

Paying back a due overpayment from Income Support 

You can try to pay back the overpayment directly through your wages or business profits. The Department of Work and Pension (DWP) will ask you to pay back through your Income Support payments. The maximum amount of money that they can charge off your weekly Income Support is around 11.1 euros. However, the DWP has the authority to increase this charge by another half of any income subject to a disregard. For example  :

  • Any weekly earnings that you get.
  • It could include any benefit that you get which is subject to a 10 euros disregard.
  • Also, any charitable income that is again subject to a disregard.

The Department of Work and Pension will see to it that you have the amount left in order to pay for your daily expenses. Expenses that are absolutely essential like paying for food or electricity, and not an expense that is not deemed essential. 

However, if you feel that they are overlooking your situation then you can directly let them know about it. If you request them asking them for a smaller weekly amount, the PWD will look for ways to cut down on the amount. 

However, if one wants to pay back using another method of payment then they again need to get in touch with the DWP or Department of Work and Pension. You might choose to pay directly through their wages or benefits or profits and not through their income support payments. 

Repayment using other Benefits

If you do not receive Income Support Payments anymore, then you have to look for other ways to make the payment to DWP. You now need to find other benefits that you might receive. 

Usually, you are supposed to pay one-third of your weekly benefit payment to the Department of Work and Pension.

One can only use one of the following benefits to pay the DWP :

  • You can use any payment from Child Benefit if you have happened to claim for it and receive weekly for your child. A family with two children can claim up to 1800 euros in a year for their kids. They usually pay around 20.70 euros per week for your first child and 13.70 euros a week for any children after it. 
  • Housing Benefit payment that you might receive is another way to pay the PWD. Try to see if your rent can be temporarily covered by someone. Or, if you can put the payment on hold for some months in order to pay the PWD with the benefit you are getting. Many debtors in bad situations save this money by living somewhere else temporarily, where they do not have to pay. For example, at a friend or relative’s place as a favour.
  • Guardian’s allowance: If you are bringing up a child whose both parents have passed away, then you could receive this Guardian’s allowance. In some cases, you will receive this allowance even if one parent is alive but you are taking care of the child. So, you can use this allowance to pay back the PWD. 

Paying the Department of Work and Pension directly

This is your last resort and option of payment if you do not receive any kind of benefit from anywhere. So, when you see that DWP Debt Management is not taking money from your benefits, you have to directly pay them. 

You can either ask to make the payment in one go or pay back the debt in instalments over a reasonable period of time. 

What happens if you do not pay back the money

Even after receiving the notice, if you still do not pay back the money or respond to it, then the DWP might take the following actions against you:

  • The DWP Debt Management may resort to something called “Direct Earnings Attachment” or the DEA. They will ask your employer to deduct money from your benefits or earnings in order to pay for the overpayments.
  • The Department of Work and Pension might pass your case to an independent debt collector. They will notify you with a letter mentioning the details. The independent debt collector will be among one the following agencies like Advantis, CCS Collect, Past Due Credit, BPO Collections, Moorcroft, Resolve Call, Past Due Credit or Shakespeare Martineau.

Repayments in case someone has died

In case of death of a debtor, the DWP Debt Management will recover the repayment from the left-behind properties of the person. If the properties show that the deceased person does not have the benefits they were on, then one can get in touch with Debt Management Recovery From Estates. <

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