Universal Credit recipients and those on other government benefits are being warned they could face £50 fines this summer if they fail to inform the Department for Work and Pensions (DWP) about changes in their personal circumstances.
The warning comes as part of the DWP’s ongoing efforts to reduce benefit overpayments. Since October 2012, the department has had the authority to issue a £50 civil penalty when a claimant receives an overpayment due to failing to report a relevant change. The penalty is added to the total amount owed and is recovered in the same way as the overpayment itself.
What Triggers a Fine?
According to Turn2Us, a national charity supporting those facing financial hardship, a civil penalty can be issued if the overpayment:
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Occurred after October 1, 2012,
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Totals at least £65.01, and
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Is legally recoverable.
Additionally, the overpayment must have been caused by the claimant either providing incorrect information or failing to correct an error that they should have reasonably identified.
Common changes in circumstances that must be reported to the DWP include moving house, a change in name, or the birth of a child. Failure to report such updates could not only result in a fine but, in more serious cases, lead to prosecution for benefit fraud if the omission is deemed deliberate.
How to Challenge the Fine
Claimants who believe a civil penalty was wrongly applied can challenge the decision. Turn2Us advises that the first step is to request a Mandatory Reconsideration within one month of the decision being made. If the DWP upholds the penalty, claimants have the right to appeal to an independent tribunal within a further one-month window.
More information on how to report changes or appeal a decision is available on the DWP website or through support charities like Turn2Us.
