Last year, almost 10,000 people sought counselling for debt after the Department for Work and Pensions (DWP) informed them that they were not entitled to benefit payments previously made to them and they needed to pay back the money. Kevin Hylton, a crane operator from Birmingham, had been dealing with the DWP for several years trying to repay £13,000 that he allegedly owed. Hylton thought he was entitled to the money when he had to take time off from work due to illness; however, when he began to receive Universal Credit, the DWP contacted him to inform him that he was ineligible for the benefit and had been overpaid. Hylton’s claim stopped, and he was forced to cover all living costs himself, leading him to visit a food bank and face financial obstacles.
The UK’s benefits system is a complex and convoluted system that requires streamlining, according to the director of external affairs at Money Wellness, Sebrina McCullough. Due to benefit overpayments, six out of ten people supported by Money Wellness require vouchers for food banks, and seven out of ten people are somewhat vulnerable. Ms McCullough has urged the new Labour government not to aim for possible redress but to engage with the debt advice sector to comprehend the problems and make changes at the front line.
The DWP stated in a media release that it is crucial to investigate new ways to decrease fraud and error in social security while assisting the most vulnerable in society. It added that it has been a priority for UK personnel to provide sustainable and affordable repayment options that support customers struggling with their reimbursement conditions. The DWP reported in a National Audit Office report that the DWP overpaid 6.7% (£9.5 billion) of benefit expenditure in 2023-24 due to fraud, claimant error, and official error, up from £8.2 billion in the preceding year.
Kevin Hylton’s case with the DWP finally progressed after he contacted BBC’s Money Box with his grievances. Until he spoke with the BBC, there was no resolution from the DWP, and he was starting his debt repayment plan unwillingly. Despite the struggles brought upon him because of the DWP’s errors, he has returned as a crane supervisor for the past 18 months
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