Universal Credit Overpayment: How to Get Help from a Money Advice Service

Dealing with a Universal Credit overpayment can feel overwhelming, especially when you’re already struggling to make ends meet. Whether the overpayment was due to an administrative error, a change in your circumstances, or a misunderstanding, you don’t have to face it alone. Money advice services exist to help you navigate these challenges, offering guidance on repayment plans, disputing unfair claims, and even reducing financial stress.

Understanding Universal Credit Overpayments

What Is an Overpayment?

A Universal Credit overpayment occurs when you receive more money than you were entitled to. This can happen for several reasons:
- Reporting delays – If your income or living situation changes but isn’t reported immediately.
- DWP errors – Mistakes made by the Department for Work and Pensions (DWP) in calculating your entitlement.
- Fraudulent claims – Though rare, some overpayments result from intentional misreporting.

How Overpayments Are Recovered

The DWP typically recovers overpayments by:
- Reducing future Universal Credit payments – They may deduct a percentage from your monthly allowance.
- Requesting a direct repayment plan – If you’re no longer on Universal Credit, they may ask for installment payments.
- Taking legal action – In extreme cases, they might pursue court-ordered repayments.

How a Money Advice Service Can Help

1. Reviewing Your Case for Errors

Money advisors can examine your overpayment notice to check for mistakes. If the DWP miscalculated your entitlement, they can help you dispute the claim.

2. Negotiating a Manageable Repayment Plan

If the overpayment is legitimate but unaffordable, advisors can negotiate with the DWP to:
- Reduce monthly deductions
- Extend the repayment period
- Temporarily pause repayments if you’re in financial hardship

3. Challenging an Overpayment Decision

If you believe the overpayment is unfair, advisors can assist with:
- Gathering evidence (bank statements, payslips, etc.)
- Submitting a formal dispute (Mandatory Reconsideration)
- Escalating to a tribunal if necessary

4. Providing Budgeting Support

Many money advice services offer free financial planning tools to help you:
- Track income and expenses
- Prioritize essential bills
- Avoid future overpayments by ensuring accurate reporting

Where to Find Free Money Advice

Citizens Advice

A UK-wide network offering free, confidential support on benefits, debt, and legal rights.

StepChange Debt Charity

Specializes in debt management, including negotiating with creditors like the DWP.

Turn2Us

Provides benefit calculators and grant searches to help those struggling with repayments.

Local Council Support

Many councils have welfare rights teams that assist with benefit disputes.

Protecting Yourself from Future Overpayments

• Report changes immediately – Notify the DWP of income shifts, job changes, or housing updates.
• Keep records – Save letters, emails, and journal entries in your Universal Credit account.
• Check statements regularly – Look for discrepancies in payments.

Facing a Universal Credit overpayment is stressful, but with the right help, you can resolve it fairly and regain financial stability. Don’t hesitate to reach out—support is available.