Universal Credit repayment pause set to end from next week

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Universal Credit repayment pause set to end from next week

The universal loan repayment break introduced in April to reduce financial pressure during the coronavirus pandemic ends next week.

In cases where universal loans are overpaid to applicants, the Ministry of Labor and Pensions (DWP) will usually reclaim the excess money, which can also affect other old benefits such as income support or housing benefit.

Eligible beneficiaries would typically reduce payments until the debt is repaid. For universal loan recipients, the DWP typically reduces payments by 15 to 25 percent of a standard allowance. reports the express.

In April, these repayment rules were suspended, as the DWP confirmed at the time: “Deductions for the retirement of universal loans and overpayments for old benefits, social fund loans and tax credits are being stopped.

“Most of the deductions are automatically suspended. However, if you are currently making repayments through a bank standing order, bank giro loan, or online banking, please contact your bank to cancel your agreement.”

Citizens Advice warns that repayments can start again from July 1st.

While the government may extend the stay and circumstances may vary from case to case, some applicants may have to resume payment of benefit overpayments next week.

If you think that a performance agency overpayment decision is incorrect, you don’t necessarily have to accept it. If a performance bureau indicates that an applicant has been overpaid, he should write to him and state the reasons why or how he was overpaid.

An applicant can also contact the office directly to explain their decision and request information that they believe has not been overpaid. If this does not solve the problem, the applicant can contest the decision and Citizens Advice can help.

To contest a DWP decision, an applicant must note the exact date on which the decision was made. This is important because challenges usually have to be met within certain deadlines.

Before a person can appeal a decision to a court, an applicant must ask the DWP to review their decision within a month in accordance with the mandatory review rules.

Once an application is made, the performance bureau reviews its decision and the applicant receives a “mandatory review” informing them whether they have changed the decision or not.

If the applicant is still dissatisfied with the DWP’s response, they may be able to appeal the decision to the Tribunal for Social Security and Child Benefit.

More information on all of this can be found on the government website. Free impartial instructions are available from the Money Advice Service, among others.

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