What happens if you have to pay back overpaid benefits?

[LindorDoubleChoc]

Do you always get the option to pay back in installments? How do they calculate them? Do they add interest? Would be grateful for any advice.

I don't think they'd add interest. I used to know what they did so it might have changed but I would say you pay back in instalments. If a person was overpaid and he/she is now working it might be a negotiated amount over a period of time. If the person is still on a benefit an amount might be taken every week from the benefit but I expect there are still rules which allow only a certain percentage of the benefit to be deducted. Does Citizens' Advice Bureau still exist? I would expect them to know, or DWP themselves, or your MP.

Thank you for replying! Luckily it's not something I think will end up with my MP or Citizens Advice - I was just hoping a Mumsnetter who has had to repay could advise.

They can take a set amount from your benefits or wages but it’s far better to make an arrangement with them first

Yes it’s in instalments the maximum they can take is 15% of your standard allowance. If that isn’t affordable speak to dwp debt management who can make a lower payment plan

Thanks for replying. I've been told by an advisor that they "may" write to me. So I'm expecting to be told what will happen, I didn't expect to be able to negotiate! We'll see. I'm quite curious as to the outcome actually. It won't be a huge amount of money because it wasn't much in the first place - new style Job Seekers Allowance which is approx £90 a week!

They can take an agreed amount from your benefits or if you're working set up a payment plan.

If you don't engage with them and are working, they will get your employer to deduct it from your wages. They don't need a court order to do so.