Overview

• The Money and Mental Health Policy Institute’s study labels the DWP’s direct 15% deductions from universal credit as aggressive and punitive, worsening financial and mental health strains for claimants.
• Official data indicate that more than 1.1 million people in the UK owe money to the DWP for benefit overpayments and that over £6.4 million was overpaid in the year ending 2024.
• The Public Authorities (Fraud, Error and Recovery) Bill would let the DWP deduct funds directly from bank accounts without a court order and extend recoveries to individuals no longer on benefit.
• Campaigners urge the DWP to adopt private-sector debt standards by assessing affordability before deductions and proactively negotiating realistic repayment plans.
• The DWP says it supports struggling claimants through affordable repayment options, referrals to the Money Advice Network and the Treasury’s Breathing Space scheme.