DWP to stop recovery action associated with benefit overpayments, tax credits debt, and social fund loans

Temporary suspension in response to the coronavirus outbreak applies to all benefits, direct debit plans, and repayments made to employers

The DWP is to stop recovery action associated with benefit overpayments, tax credits debt, and social fund loans.

In a recorded message on its Debt Management telephone line (0800 916 0647, Option 3), the DWP says that due to the coronavirus (COVID-19) outbreak - 

'... we are stopping recovery action associated to benefits overpayments, tax credits debt being managed by DWP, and social fund loans for a temporary period.

We will no longer start to recover any new debts and will be suspending repayment of any debts already being recovered. This includes deductions for the repayment of benefit overpayments, tax credit debt and social fund loans from all benefits, direct debit plans, and repayments made to employers.

You do not need to speak to an adviser to ask us to do this, we have arranged this on your behalf.

If you currently make repayments through a bank standing order, please contact your bank to cancel your arrangement. If you currently make repayments by bank giro credit, please suspend these payments immediately. If you currently make repayments through online banking, please suspend these payments immediately.

Stop press (3 April 2020): The DWP has updated its Benefit overpayment recovery: staff guide page to say that 'claimants do not need to make any repayments until July 2020 at the earliest', and has added a message to its Direct Earnings Attachment: an employers' guide page to say that 'you should not make any DEA deductions to your employees’ pay in April, May or June 2020. You’ll be told if this will be extended'.

Stop press (4 April 2020): The DWP has now confirmed that it is pausing the recovery of benefit overpayments for three months in response to the COVID-19 outbreak to allow it to move a significant number of staff to frontline roles following the increase in benefit claims over the last two weeks.