Recovery of Overpayments, Tax Credit Debt and Loans
Although there has been no official statement yet, it looks as if DWP have temporarily suspended their recovery of benefit overpayments, tax credits debt, and social fund loans during the coronavirus crisis. This information is given by DWP on its recorded voicemail for debt recovery.
The announcement continues:
“We will no longer start to recover any new debts and will be suspending repayment of any debts already being recovered. This includes deductions for the repayment of benefit overpayments, tax credit debt and social fund loans from all benefits, direct debit plans, and repayments made to employers.
You do not need to speak to an adviser to ask us to do this, we have arranged this on your behalf.
If you currently make repayments through a bank standing order, please contact your bank to cancel your arrangement. If you currently make repayments by bank giro credit, please suspend these payments immediately. If you currently make repayments through online banking, please suspend these payments immediately”.
If you would like to hear the announcement for yourself, call 0800 916 0647, Option 3.
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