The Department for Work and Pensions (DWP) has confirmed that Universal Credit claimants and recipients of other benefits must report 20 specific changes in their circumstances to avoid penalties. Failure to do so may result in a £50 fine on top of any overpaid benefits.
Since October 2012, the DWP has had the authority to issue a £50 ‘civil penalty’ when an overpayment occurs because a claimant did not notify them of a change. This fine is added to the amount that must be repaid.
According to the charity Turn2Us, if you believe you have been unfairly fined, you have the right to challenge this decision. The first step is to request a Mandatory Reconsideration within one month of receiving the penalty notice. During this process, you should clearly explain why you think the civil penalty is unjustified.
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If the DWP upholds the penalty after reconsideration, you can appeal to an Independent Tribunal. However, the appeal must be filed within one month of the DWP’s decision on your reconsideration request.
For detailed information on which changes must be reported and how to do so, claimants should consult the official government website.