The recovery of benefit overpayments and social security loans from benefits including Universal Credit, ESA and DLA, has been suspended for three months.
Communities Minister Deirdre Hargey said the decision was made in response to the COVID-19 outbreak and will mean “many people” will see an increase in their payments.
Announcing the suspension, Minister Hargey said: "This suspension of debt recovery activity will provide financial easement to people with benefit overpayment related debt or an outstanding loan balance.
"The change means many people will see an increase in the amount of money they receive in benefits during these three months."
Overpayment and loan deductions will cease from:
- Universal Credit
- Attendance Allowance
- Carer’s Allowance
- Disability Living Allowance
- Employment Support Allowance
- Industrial Injuries Benefit
- Industrial Injuries Disablement Benefit
- Income Support
- Jobseeker’s Allowance
- Maternity Allowance
- Pension Credit
- Personal Independence Payment
- State Pension
- Widow’s Parents Allowance
- Widow’s Pension Allowance
The Department said many activities will cease immediately but others may take longer to implement. Recovery of all Social Fund and Discretionary Support loans will be suspended.
Customers currently making repayments through a Bank Standing Order may wish to contact their bank to cancel their arrangement, however, this will need to be set up again following this pause period. For customers repaying through other means, the Department has already written to employers asking them to stop deductions from salaries and all recoveries by Direct Debit will also be suspended for three months.
Minister Hargey added: "I remain committed to doing everything I can to ensure that those most in need and the most vulnerable receive all the financial help and support they can during this difficult time.
"This suspension of the recovery of benefit overpayments and loans will go some way to easing the financial difficulty that many find themselves in during this period of uncertainty."
