Rules on Universal Credit over-payments and the recovery of various benefit loans could be changed this week.
A temporary pause on handing back excess cash was introduced by the Department of Work & Pensions in April to help cope with extra financial pressure during the coronavirus pandemic.
Benefit claimants who have been overpaid would usually see their future payments reduced until the cash and various social fund loans are repaid, BristolLive reports.
In April, these repayment rules were put on hold, with the DWP saying at the time: “Deductions for the recovery of Universal Credit and legacy benefit over-payments, Social Fund loans and Tax Credit debts will be paused.
"The majority of deductions will be suspended automatically, however if you currently make repayments through a Bank Standing Order, Bank Giro Credit or through online banking, please contact your bank to cancel your arrangement.”
Repayments are scheduled to begin again on July 1 after a three-month break but this may soon change, according to Citizens Advice.
The payment suspension my continue and circumstances may vary from case to case, but some claimants may have to restart paying benefit overpayments.
It a claimant feels an overpayment ruling is incorrect it does not have to be accepted.
Under normal circumstances, the local benefit office writes to a claimant that has been overpaid indicating the reasons as to why or how they have been overpaid.
Claimants can challenge any decision and request any information used to make that ruling
