DWP benefit overpayment write-off

Yes, you can ask the DWP to write off a benefit overpayment, though the circumstances in which they will agree to do so are limited. Here is a detailed explanation of the position.

Legal basis for recovery:

The DWP has a legal right to recover overpayments of most benefits under section 71 of the Social Security Administration Act 1992 (where the overpayment was caused by misrepresentation or failure to disclose a material fact) and under section 71ZB (for overpayments that are recoverable regardless of fault, which applies to most current benefits including Universal Credit). The existence of a legal right to recover does not, however, mean the DWP must pursue recovery in every case.

When write-off may be considered:

The DWP has internal guidance, primarily contained in the Benefit Overpayment Recovery Guide, which sets out the circumstances in which an overpayment may be written off. These include:

1. Where recovery would cause severe hardship or be detrimental to the health or welfare of the debtor or their family.
2. Where the cost of recovery would exceed the amount of the overpayment.
3. Where the debt is very old and there is no realistic prospect of recovery.
4. Where the debtor has died and there is no recoverable estate.
5. Where the debtor is bankrupt or subject to a debt relief order and the overpayment is included in that process.

The DWP also has a general discretion not to pursue recovery where it would be inequitable to do so, though they exercise this cautiously.

How to request a write-off:

You should write to the DWP Debt Management team, clearly setting out why you believe the overpayment should be written off. Include any evidence that supports your case, such as medical evidence, evidence of financial hardship, a detailed income and expenditure breakdown, or any other relevant documentation. Be specific about which ground you are relying on. Keep a copy of everything you send.

If the overpayment is being recovered by deductions from your ongoing benefit, you can also ask for the rate of deduction to be reduced as a separate or interim step, even if write-off is refused.

What to do if they refuse:

If the DWP refuses to write off the debt, you have several options. You can ask them to reconsider, providing any further evidence. You can complain through the DWP's internal complaints process. You can escalate to the Independent Case Examiner if internal complaints are exhausted. You can also contact your MP, who can make representations on your behalf.

If the underlying overpayment decision itself was wrong, for example if there was no misrepresentation or failure to disclose, or if the amount was calculated incorrectly, that is a different issue. In that case you should challenge the overpayment decision by way of mandatory reconsideration and then appeal to the First-tier Tribunal (Social Entitlement Chamber). The time limit for requesting a mandatory reconsideration is normally one month from the date of the decision, though late requests can sometimes be accepted.

Practical points:

Write-off is discretionary, not a right, so there is no guarantee of success. The DWP is more likely to agree where the debt is relatively small and the cost of recovery is disproportionate, or where there is compelling evidence of hardship or ill health. If your financial circumstances are genuinely difficult, even if write-off is refused, pushing for a reduced rate of deduction can make a significant practical difference.

If the overpayment relates to Universal Credit, tax credits, or Housing Benefit, the rules and the relevant recovery team may differ slightly, so it is worth checking which body is pursuing the debt and under which provision.

If there are specific details about your situation, such as the benefit involved, the amount, how the overpayment arose, or your current financial position, I can give you a more tailored answer.