Benefit overpayments, budgeting loans and advances

Benefit overpayments

The Department for Work and Pensions (DWP) may have told you that you have been paid too much benefit and they may have asked you to pay it back. This is called a benefit overpayment.

The DWP will usually collect benefit overpayments by:

  • making deductions from most types of benefits;
  • making deductions from your wages, if you are working; or
  • taking court action against you.

The type of action that the DWP takes depends on your circumstances.

Business Debtline can give you more help and information about dealing with these types of debts.

Benefit overpayments for more advice and information.

Budgeting Loans and new-style advances

If you receive certain benefits, you may have taken out a budgeting loan, short-term advance or budgeting advance. The way the debt is recovered depends upon whether you still receive benefits. If you still receive benefits, the debt usually needs to be treated as a priority. This is because the DWP has the power to make deductions from your ongoing benefits before you get them. Sometimes, you may be able to treat the debt as a non-priority. Contact us for advice.