Some claimants of Universal Credit and other benefits have been warned that they could face fines of £50 this summer.
The Department for Work and Pensions (DWP) has the power to impose fines on benefits claimants who receive overpayments if they do not inform the authorities of a change in circumstances.
The fine will be added to the overpayment amount and recovered from the individual.
If you want to avoid the fine, inform the DWP of any changes in circumstances, foe example a change in name, address or a new addition to the family.
You may be prosecuted for fraud if the government believe you did not tell them of any changes in order to receive an overpayment.
The fine of £50 is known as a ‘civil penalty’. Turn2Us, a charity which helps people who struggle financially explain that a civil penalty will apply if the overpayment happened after 1 October 2012, is £65.01 or more and is recoverable. The overpayment must also have been caused by a person making an incorrect statement, giving incorrect information on purpose or if the person did not take steps to correct the error.
Turn2Us also explained that you can challenge the fine. They said: “If you agree that you have been overpaid but you don’t think you should have been given a civil penalty you can challenge the decision to give you a civil penalty.
“You will first have to request Mandatory Reconsideration of the decision. You have one month to request Mandatory Reconsideration. You should explain why you think you should not have been given a civil penalty.
“If the DWP do not change their decision, you can appeal to an Independent Tribunal. You only have one month from the date of the DWP’s decision on your request for Mandatory Reconsideration to request an appeal.”
