A mum of two disabled children who was hugely worried about how she would pay more than £8,600 in Universal Credit overpayments has been cleared of repaying the amount by a High Court judge.
The woman received a letter from the DWP demanding she repay £8623.20 despite her repeatedly checking her benefits were correct.
She took on the department at the High Court, with a judge finding the department had acted unlawfully in not publishing its overpayment debt waiver criteria.
She was one of some 370,000 claimants to receive overpayments due to a DWP error in a single year, reports ITV News.
The single mum was already in her overdraft when she received the letter demanding the repayment, using foodbanks and working part-time while caring for her two adult children with learning difficulties.
READ MORE: Nationwide Building Society increases rates on all variable rate accounts
The error occurred after a change in circumstances that affected her entitlement. The mum told the DWP four times when one of her sons began an apprenticeship, in efforts to make sure her payments were correct.
Staff assured her they were correct but it turned out she was being overpaid, and when the DWP realised the error, she had already spent the money on her family’s daily living costs.
The department refused to waive the debt three times so she took the case up with a tribunal.
The tribunal found the overpayments were due to the DWP’s error, but they could not overturn the demand for the repayments.
She wrote to the department to explain her difficult situation and wrote a second time to explain she had been advised the debt could be waived.
The DWP sent a response saying it could not do this as she had used all the department’s appeal processes.
She said she felt a sense of despair at this time, saying: “There were times I was starting to wonder if it was better I wasn’t there.”
She eventually launched a judicial review of the decision with the High Court. This review focused on the criteria of the Government’s Benefits Overpayment Recovery Guide, which outlines when the DWP can waive a debt – but this information was not publicly available.
A judge determined it was unlawful for the department to keep the waiver guide unavailable to the public. The department told ITV News it has since published the waiver advice online.
They also found the department was in breach of public sector equality legislation for pursuing the mum for the debt.
The court also determined the mum should not have to repay the amount as she had received the overpayments relying on incorrect information from the DWP, and the overpayments were to her detriment.
This was because she spent the money on day-to-day living expenses and had lost out on other means of income available to her, as a result of her understanding that she was entitled to the additional money.
Emma Vincent Miller, the solicitor who represented the woman, urged others who have been overpaid benefits in error to make a waiver request to DWP Debt Management.
A Government spokesperson told Express.co.uk: “We support millions of people every year and our priority is they get the benefits they are entitled to as soon as possible and they receive a supportive and compassionate service.
“We carefully balance our duty to the taxpayer to recover overpayments with our support for claimants on means tested benefits, and safeguards are in place to ensure deductions are manageable, including payment plans.
“Deductions help protect claimants from enforcement actions such as eviction, ensure priority debts such as child maintenance are still addressed and recover taxpayers’ money when overpayments are made.”
Universal Credit claimants have to report a change in circumstances to the DWP, such as taking up a new job or changing address, as this can affect how much they should receive.
Payments for the benefit recently increased 10.1 percent, as well as for many other benefits, including PIP and Pension Credit.
For the latest personal finance news, follow us on Twitter at @ExpressMoney_.
