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Universal Credit recipients and those on other benefits are being warned that they may receive a £50 penalty from the Department for Work and Pensions (DWP).
Since October 2012, the DWP has been allowed to issue a civil penalty to claimants who are overpaid because they failed to report a change in circumstances. This £50 charge is added on top of any overpayment that must be repaid.
To avoid being overpaid, it’s important to notify the DWP of any changes that could impact your benefits—such as a change of address, a name change, or the birth of a child. If the government believes you intentionally withheld information to receive extra benefits, you could be investigated for benefit fraud.
Why might you receive a £50 DWP fine?
Turn2Us, a financial support charity, outlined the conditions under which a civil penalty can be applied. The overpayment must:
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Have occurred after 1 October 2012
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Be £65.01 or more
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Be recoverable
The overpayment must also be caused by someone:
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Providing incorrect information, or
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Giving wrong details through negligence, and
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Failing to take reasonable steps to correct the mistake
A civil penalty will not be issued if the DWP moves forward with a benefit fraud investigation instead.
How to dispute a £50 penalty
Turn2Us also explained that you can challenge the fine. If you accept that an overpayment happened but believe the civil penalty is unfair, you can dispute it by requesting a Mandatory Reconsideration within one month. You must explain why you believe the penalty is not justified.
If the DWP upholds its decision, you can then appeal to an Independent Tribunal, again within one month of the Mandatory Reconsideration outcome.
