Overpayments: DWP collection and repayment
How does the DWP collect overpayments?
If you are still getting the benefit, the DWP may take money off future benefits until the overpayment is paid off. Or, the DWP may be able to take money off another benefit you are getting. If you are in hardship, ask the DWP to consider taking less.
Find out more on how overpayments are collected on the gov.uk website.
Is a benefit overpayment always a priority debt?
If the council or DWP is taking money from your benefit to repay the overpayment, list the overpayment under priority debts on your financial statement. This is because you only have a limited say in how much is taken.
Also, if a Housing Benefit overpayment was made to your private landlord or housing association, list it under priority debts. This is because, if your landlord repays the money, it is likely to create rent arrears for you.
If you are not getting any benefits and your overpayment was not made to a private landlord or housing association, you may want to consider listing the overpayment under credit debts on your financial statement.