Overview
- A report from the Money and Mental Health Policy Institute finds that 1.1 million Universal Credit claimants face 15% deductions within weeks after undetected overpayments accumulate.
- The DWP highlights its new Fair Repayment Rate, capping benefit repayments at 15% of the standard allowance to limit income shocks for 1.2 million households.
- Claimants describe losing about £60 a month to clawbacks, leaving some unable to afford food and exacerbating existing mental health conditions.
- The Public Authorities (Fraud, Error and Recovery) Bill is set to give the DWP powers to access bank transactions and deduct debts even after benefit entitlement ends.
- Campaigners urge the DWP to introduce mandatory affordability checks and negotiate realistic repayment plans in line with consumer-creditor standards.