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Universal credit overpayment - confused!

8 replies

dinglydanglydoo · 18/11/2025 18:24

Earlier this year I had a compliance interview, and it turned out I was over the savings threshold. I had to send bank statements for past few years etc, which took a long time and was very stressful period but it was eventually done.

I don’t want any questions about why I was over, or how, how I didn’t know etc. This isn’t what I’m asking.

A few months after sending the bank statements I got a letter in my journal saying they have calculated I had been over payment by X amount and had to pay back a reduced amount of this - which I paid in full.

I then decided I wanted to close my claim and live off my wages and savings, but they said I could not close my claim as compliance action was still ongoing.

I then got a letter in my journal saying I owed a cost of living payment, again paid it in full. Heard nothing again for a couple of months.

I then got another letter in my journal saying the result was UC had been disallowed from X date and I was to pay this all back. All I got was a letter saying I owed it all back from 1 year period - then my claim was closed so I couldn’t reply in my journal.

I haven’t had this in writing yet, just this journal in my letter and no contact yet from debt management.

I’m really confused, will I receive further letters from other periods or will it just be this one? Is this amount in the final letter going to have the reduction of the amount I already paid? I rang debt management but they didn’t seem to know much. It’s been 2 months since the last letter was sent to my journal.

OP posts:
JohnofWessex · 18/11/2025 22:31

I would ask them for a full breakdown in writing of the periods and amounts of the overpayments also have they applied the diminishing capital rule

You will probably need to write to them to get this

There should then be appeal rights

Dont pay anything until you have it

dinglydanglydoo · 19/11/2025 00:35

@JohnofWessex I have come across this diminishing of capital rule, what exactly is it? I’m not going to pay until I get a letter through the post, I’m not just going by what they have posted in my (now closed) journal. Thank you!

OP posts:
Coffeeandbooks88 · 19/11/2025 12:37

How over the limit were you? Must have been quite a bit. I don't buy you didn't notice to be honest.

Catsknowbest · 19/11/2025 12:45

dinglydanglydoo · 19/11/2025 00:35

@JohnofWessex I have come across this diminishing of capital rule, what exactly is it? I’m not going to pay until I get a letter through the post, I’m not just going by what they have posted in my (now closed) journal. Thank you!

Your next phase of correspondence will likely come from DWP Debt Management. The diminishing capital rules can be explained to you by a benefits adviser- I would contact your local CA for an appointment once you have all the paperwork relating to what you owe, they can then also advise and support regarding repayment as well as understanding how the legislation has been applied. Its part of what I do professionally but I don't advise out of my work environment as it can lead to incorrect advice not having all the paperwork and full circumstances to hand.

dinglydanglydoo · 21/11/2025 12:11

@JohnofWessex @Catsknowbest thank you both

OP posts:
Catsknowbest · 21/11/2025 16:03

dinglydanglydoo · 21/11/2025 12:11

@JohnofWessex @Catsknowbest thank you both

If you get advice at the right time you will get through this ok

Boomer55 · 21/11/2025 16:29

If you’ve been overpayed, then you will have to pay it back. Just negotiate with them. 🤷‍♀️

hungrypanda4 · 21/11/2025 16:34

I don’t understand how you didn’t realise you were over the savings limit when you are the one putting money into your savings.

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