Universal Credit warning as 1000’s of claimants might should repay £650
Tens of 1000’s of individuals who claimed Universal Credit within the earlier monetary yr have been incorrectly paid a £650 value of dwelling cost, new information suggests.
More than eight million households acquired the £650 cost final yr, which went out to folks on sure means-tested advantages, together with Universal Credit, Jobseekers’ Allowance, and Pension Credit.
The funds went out in two instalments, with the primary cost for £326 and the second instalment for £324.
New Government figures point out £330 million of funds went out to individuals who have been incorrectly receiving Universal Credit on the time.
The report relates solely to the funds made by the DWP – some folks on tax credit additionally acquired the cost however these have been administered by HMRC.
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Individuals who acquired these funds in error could also be required to repay the funds. The report states that the estimates for the quantity of overpayments have been produced by “assuming that fraud and error may solely happen when claimants have been incorrectly receiving the qualifying profit”.
The study also said: “In this situation, the claimant does not have entitlement to the qualifying benefit, and they are overpaid the full amount of the cost of living payments.”
The report found some £60million in overpayments were due to claimant error while some £40million were due to a DWP error.
The report states: “Overpayments relating to incorrectly paid low-income benefits accounted for around £9 in every £10 overpaid on cost of living payments, at 4.6 percent (£380million) in the financial year ending 2023.
”This was largely as a consequence of 3.9 p.c (£330million) of value of dwelling funds expenditure being overpaid to claimants incorrectly receiving Universal Credit.”
A similar cost of living payment worth £900 goes out this tax yr to folks on sure means-tested advantages, together with Universal Credit and Pension Credit.
This shall be paid in three instalments, with the primary £301 cost despatched out in current weeks. The second £300 instalment will exit in autumn 2023 with the ultimate £299 instalment in spring 2024.
People on incapacity advantages are to get a £150 cost which can exit to eligible folks subsequent month.
Pensioners who obtain the Winter Fuel Payment this coming winter are additionally to get an extra value of dwelling cost of between £150 and £300.
The funds shall be paid mechanically to people who find themselves eligible however as with the earlier funds, if an individual is paid in error they could should repay the quantity.
Britons face rising prices for on a regular basis wants with general inflation at 8.7 p.c whereas meals inflation is at 19.1 p.c.
Energy payments went up in April when the instalments from the £400 vitality payments low cost completed in March.
There was some aid this week as Ofgem introduced the value cap will fall which means many bills will fall from July.
Britons are at the moment shielded from the market worth of vitality by the vitality worth assure which caps common payments for a typical family at £2,500 a yr.
When the Ofgem worth cap is falling to £2,074 a yr for a typical family from the beginning of July which means many individuals will see their payments go down.
An individual can discover out what advantages they’re entitled to utilizing a profit calculator, such because the device out there on the Turn2us web site.
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