What happens if you are overpaid Universal Credit?

Deadlines to know

• To challenge an overpayment, ask for a mandatory reconsideration within one month of the date on your letter.
• If you still disagree after that, appeal to a tribunal within one month of your mandatory reconsideration notice.

What an overpayment is

An overpayment is money you were paid but were not entitled to. It can happen if:

• the information you gave was wrong
• you did not report a change in your circumstances straight away
• you gave the wrong information when you reported a change
• a mistake was made with your payment

For Universal Credit, any payment above what you were due can be taken back. This includes mistakes made by DWP. A Universal Credit advance is also repaid from your payments.

How it is taken back

If you still get Universal Credit, DWP reduces your payment each month until the debt is repaid. Since April 2025 the usual rate is 15% of your standard allowance.

Example: Lee is single, aged 28, and owes £900. At about £63.74 a month, it would take around 15 months to repay.

If you stop getting benefits, DWP Debt Management writes to you. You can pay in full or set up monthly payments. If you work and do not agree a plan, DWP can ask your employer to take money from your wages.

Steps if you get an overpayment letter

1. Read the letter. Check the amount, the dates and the reason.
2. Decide if you agree. If you think it is wrong, or the amount is wrong, ask for a mandatory reconsideration. You can do this in your Universal Credit journal, by phone or in writing.
3. Say why it is wrong. Give the date of the decision, your name, address, date of birth and National Insurance number. Add evidence, such as payslips or bank statements.
4. If you agree but cannot afford the repayments, contact DWP Debt Management to talk about what you can pay.

If repayments cause hardship

If the repayments would cause you or your family hardship, DWP can lower the amount. You need to give reasonable evidence, such as your income and spending.

DWP Debt Management: 0800 916 0647, Monday to Friday, 8am to 7:30pm.

In some cases DWP can decide not to recover all or part of a debt. This is called a waiver. Ask Debt Management if you think your situation is exceptional.

Free help

Free, independent help is available from Citizens Advice, Citizens Advice Scotland, and Advice NI in Northern Ireland.

If you miss the deadline

You can still ask for a mandatory reconsideration late if you have a good reason, such as being in hospital or a bereavement. Even if it is too late to challenge the debt, you can still ask Debt Management for lower repayments.

If you live in Northern Ireland

Contact Debt Management in Northern Ireland straight away if you are struggling. You can ask about an affordable plan or reduced repayments, and in special cases a waiver. There is no right of appeal against a decision not to grant a waiver.

Related guides

• What changes must I report on Universal Credit?
• How do you ask for a Universal Credit mandatory reconsideration?
• Can I get a Universal Credit advance?
• What are my options if I'm in debt?
• How much Universal Credit will I get?

Where this comes from

• Benefit overpayments (GOV.UK)
• Benefit overpayments: when repayments have to be made (GOV.UK)
• Benefit overpayments: how to make a repayment (GOV.UK)
• Benefit overpayment recovery guide (DWP)
• Universal Credit: what you'll get (GOV.UK)
• Who to talk to about deductions from your Universal Credit (nidirect)