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Help with uc overpayment

11 replies

Messedupbigtime13 · 30/06/2024 02:55

So I applied to uc as a student in 2022 at the time told them I was in year 1 of a 3 year course, I don't read my statements properly however they stopped taking off student income, I have now been asked to start a restart scheme however I'm still a student, when I went over the statements this has been going on for a year and a half, I've messaged them explaining i didn't realise I needed to declare every year however this has lead to a massive overpayment over time and im wondering what's going to happen next
I suffer with anxiety and it has caused a massive breakdown with it to the point I cant sleep or anything someone please give me advice because I'm petrified right now

OP posts:
OhLookAnotherDay · 30/06/2024 03:09

Do they know they've overpaid you? Once they are aware of it they'll work out how much you owe and get in touch about paying it back. What they normally do is make a small deduction from future payments until the amount is paid off. You don't need to pay it in one go, unless you want to/ are able to.

itwasalittlelikethis · 30/06/2024 03:20

I had an overpayment that went on for nearly a year (a different reason than you). I told them via my journal. They just asked me to pay it back....they will deduct it in instalments from future payments. They will send you a formal letter asking you to explain why you didn't tell them earlier. And then you might also get a £50 fine.

Try not to worry. I was also really really worried about getting in to serious trouble, but it was all okay. Just be honest and tell them. It will be fine as long as you are honest and try to tell them what's happened, before they find out for themselves.

CraftyGoblin · 30/06/2024 03:41

I used to work for DWP. First of all they will adjust your claim so they pay you the right amount going forward, based on your current circumstances. It may be some time before they calculate your overpayment. Before they do this there is every chance you will be asked to attend a job centre for a compliance interview. It isn't an interview under caution and you won't have a criminal record. It's to check if there is any reason why you didn't notify them (which as you've already said is because you didn't realise would be "mistake".)

As the welfare reform act puts the claimant liable to repay any overpayment regardless of whether it was caused by them or DWP (official error) you will have to repay it. Previously, the social security administration act classified overpayment into 3 categories - official error, mistake, fraud. Official errors didn't need to be repaid. The meeting- which may take place by phone post-covid - is to gather information on how to classify the overpayment or to bring any evidence as to why it isn't an overpayment (which in your case doesn't apply). If you did it on purpose it would be fraud and that would be treated differently. As they have no evidence yours will be classed as mistake (failure to notify) and unless you have a medical condition or recent bereavement that meant you were out of sorts and couldn't possibly tell them at the time, you will get a £50 civil penalty added to the amount to be repaid. They say this is a deterrent. You won't find out if you'll get one of these until they send you the letter notifying of the overpayment. It could be months before you hear about paying it back.

You will start to get automatic deductions shown in your journal for about £50 a month per debt (per period of overpayment). The civil penalty loads onto the system as a separate debt and is repaid first. You can end up repaying several debts at once. If you can't afford the deducted amount, call DWP debt management as soon as you are notified and ask to reduce the deductions. They may ask for income and expenditure. As your overpayment won't be classed as fraud the rules for reducing aren't as strict as they would otherwise be (for fraud , one of the reasons you can have it reduced is if your doctor provides a note to say you are starving. I'm not exaggerating.) For mistake overpayments it's if you can't meet your regular outgoings. Similarly, if you feel you can pay more or pay in a lump sum to get it out of the way you can do. They can't reduce the amount of the first deduction. Once that's been calculated, that's the amount you will get deducted that month. They have no facility to change it. I used to set the deductions and it felt a bit evil, especially as people aren't notified in advance.

You won't have a criminal record or anything. It doesn't affect your credit rating or ability to claim in future. The debt won't go away though. Benefits aren't paid under the consumer credit act therefore the debt doesn't become statute barred. If you stop claiming and don't pay they write to your employer to take up to 40% of earnings, take out of other benefits, or even your pension if you never earn or claim again until then.

Sorry got carried away there. It's pretty much the only thing I know anything about.

TLDR don't worry.

Messedupbigtime13 · 30/06/2024 04:00

With all my student loans and bursary for the last year the totals over 15k I actually feel sick to my stomach, the job I will get at the end of university requires no convinctions and I'm so scared they will think it is fraud everything I've been reading is making me feel worse, thanks for your answers so far.

OP posts:
Messedupbigtime13 · 30/06/2024 04:03

May I add as soon as I went through all the statements I messaged them straight away.

OP posts:
CraftyGoblin · 30/06/2024 04:15

The only way they will think it is fraud is if they have evidence it was deliberate. The only evidence they have of that is if you admit you knew you should have told them. It's hard to prove deliberate deception. Usually that's reserved for people lying about medical conditions. Ie. Explicity stating they cannot ever walk aided or unaided but being covertly recorded walking. If you maintain that it was a genuine mistake that you rectified, then the overpayment amount is irrelevant. I've seen mistakes over 100k. You absolutely won't get a criminal record for this unless you say something like "I knew I should have told you but I needed the money so I didn't". If they ask, you didn't even think you might need to tell them. I only say that because you could possibly get someone overzealous and that could be taken as an admission.

Messedupbigtime13 · 30/06/2024 04:26

CraftyGoblin · 30/06/2024 04:15

The only way they will think it is fraud is if they have evidence it was deliberate. The only evidence they have of that is if you admit you knew you should have told them. It's hard to prove deliberate deception. Usually that's reserved for people lying about medical conditions. Ie. Explicity stating they cannot ever walk aided or unaided but being covertly recorded walking. If you maintain that it was a genuine mistake that you rectified, then the overpayment amount is irrelevant. I've seen mistakes over 100k. You absolutely won't get a criminal record for this unless you say something like "I knew I should have told you but I needed the money so I didn't". If they ask, you didn't even think you might need to tell them. I only say that because you could possibly get someone overzealous and that could be taken as an admission.

Edited

Thank you for your advice it's helped calm me a little bit, I honestly didn't realise it wasn't on there part of my mental health issues I don't read letters or anything fully, it was only when I realised they wanted me to do the restart scheme that I checked them all. They haven't asked me about the student income and I messaged as soon as I realised, it's the wait now for them to reply. I'm a honest person and I didn't do it on purpose I just checked my journal and it clearly shows me saying I'm in 1st year of the 3 year course.

OP posts:
Messedupbigtime13 · 30/06/2024 04:29

I have 2 disabled children and but I only claim DLA for 1 (And only did this as she has alot of appointments and i was struggling to afford to take her to them all) and I stopped my carers allowance and everything the day I started uni I'm usually so on the ball with stuff that I just feel rubbish right now knowing I have been overpaid and not realised until now.

OP posts:
CraftyGoblin · 30/06/2024 04:32

Messedupbigtime13 · 30/06/2024 04:26

Thank you for your advice it's helped calm me a little bit, I honestly didn't realise it wasn't on there part of my mental health issues I don't read letters or anything fully, it was only when I realised they wanted me to do the restart scheme that I checked them all. They haven't asked me about the student income and I messaged as soon as I realised, it's the wait now for them to reply. I'm a honest person and I didn't do it on purpose I just checked my journal and it clearly shows me saying I'm in 1st year of the 3 year course.

Oh in that case, you might not even get a civil penalty of £50 and it could be classed as official error. That will come down to whether the person who picks it up thinks you should have realised the mistake with the calculation. Unfortunately you would still have to repay it. I reckon if you have pointed out that note to them, and they agree that it's their error, then you may not even have an interview. It's easy to say what they should do in each circumstance but sadly that's not my experience. I would say to them- I've looked into this having realised there may be an overpayment, and as I did notify you, I believe this would be classed as an official error overpayment? No harm in doing so.

Messedupbigtime13 · 30/06/2024 04:45

CraftyGoblin · 30/06/2024 04:32

Oh in that case, you might not even get a civil penalty of £50 and it could be classed as official error. That will come down to whether the person who picks it up thinks you should have realised the mistake with the calculation. Unfortunately you would still have to repay it. I reckon if you have pointed out that note to them, and they agree that it's their error, then you may not even have an interview. It's easy to say what they should do in each circumstance but sadly that's not my experience. I would say to them- I've looked into this having realised there may be an overpayment, and as I did notify you, I believe this would be classed as an official error overpayment? No harm in doing so.

I will do thank you so much again for your help really appreciated 🙂

OP posts:
Jackjoe21 · 03/09/2024 22:00

Hi I am in a similar situation and worrying myself over it! How did you get on with it?

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