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DWP Clarifies Overpayment Recovery: Terminally Ill May Seek Waivers in Exceptional Cases

The written reply to MP Zöe Franklin outlined reporting duties, possible penalties, waiver criteria, plus options to seek reconsideration or appeal.

Overview

  • DWP minister Andrew Western said people with a serious or terminal diagnosis can ask the department to stop recovering an overpayment through a waiver, which is only granted in compelling, exceptional circumstances.
  • The department recovered £2.7 billion in overpaid benefits in 2023–24, underscoring the scale of current enforcement activity.
  • Official guidance tells claimants to report suspected overpayments or changes in circumstances, warning that failure to do so could mean repayment and a £50 penalty.
  • Claimants who are told to repay can request a mandatory reconsideration and challenge decisions through an appeal.
  • The DWP says staff are trained to support vulnerable customers and will aim for affordable repayment plans, though charities and some MPs warn that repayment demands can cause severe distress.