July 17, 2025
JamRadio Newsdesk | Social Affairs -
A new investigation has revealed that over 1.1 million people across the UK are being chased by the Department for Work and Pensions (DWP) for benefit overpayments — many of which were caused by errors made by the department itself.
The research, published by the Money and Mental Health Policy Institute, paints a damning picture of how the DWP’s aggressive recovery tactics are pushing vulnerable claimants into financial ruin and mental health breakdowns.
Unlike private creditors, the DWP can deduct 15% of a person’s monthly Universal Credit without warning, explanation, or a court order. For many, that means going hungry.
One participant told researchers:
“Some days I have been not eating because I can’t afford to, which is leaving my mental health in tatters.”
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The study focused on people with serious mental health conditions, including bipolar disorder and schizophrenia. Many reported direct deductions of £60 a month, leaving them unable to afford food, heating, or basic hygiene products.
Helen Undy, Chief Executive of the Money and Mental Health Policy Institute, said:
“It cannot be right that the state is lagging far behind the standards that consumer creditors have to meet in treating people fairly and with respect.”
But the scandal runs deeper. The DWP is not taking responsibility for its own mistakes. In many cases, overpayments were caused by administrative errors, yet the department continues to pursue repayments as if the fault lies entirely with the claimant.
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And it could get worse. Under the proposed Public Authorities (Fraud, Error and Recovery) Bill, the DWP would gain powers to deduct money directly from people’s bank accounts, even if they’re no longer receiving benefits — and still without a court order.
One victim told JamRadio News: “I’m being chased by the DWP for a £5,000 overpayment of Carer’s Allowance because they claim I had failed inform the DWP that the DWP had stopped paying my son's DLA and I was no longer a carer. It’s a completely absurd proposition.”
Campaigners say this is a slow-motion crisis, echoing the Carer’s Allowance scandal, where thousands were prosecuted for overpayments they didn’t understand or intend.
