The Department for Work and Pensions (DWP) says people on Universal Credit could claim a refund. Those who were handed a Hardship Payment from the welfare scheme between January 1, 2014, and January 11, 2021, may now be eligible for a refund and are being urged to get in touch with the DWP to re-evaluate their repayments before the May 4, 2025 deadline.
The DWP made it known, saying: “This scheme is for people who received a Recoverable Hardship Payment from Universal Credit. Hardship payments provide financial protection for customers whose benefit is reduced by a sanction or a fraud loss of benefit penalty.”
Individuals can claim a refund if the DWP previously dismissed their plea to pause repayments. Those struggling with the process can seek guidance through the helpline provided at 0800 158 5557, the Daily Record reports. To be considered for a halt on repayment demands by the DWP, applicants must satisfy all necessary conditions and present convincing evidence gathered at the time they initially sought hardship relief:
- between January 1, 2014 and January 11, 2021 you asked Universal Credit or DWP Debt Management to waive the repayment of a hardship payment, or reconsider the rate of recovery, and
- DWP refused your request or refused to consider the request
- you could not afford to repay the hardship payment at that time, or
- it had a significant effect at the time on your or your family’s health or wellbeing – this means that it caused a health condition or made a health condition worse
Any claims should be registered via the official GOV.UK form here and must be lodged by no later than May 4, 2025.
Among the potential evidence you could provide are: inability to repay your hardship payment, impact of the hardship payment on your or your family’s health or wellbeing, financial records from the time such as bank statements, loan information, or letters from creditors, and medical documentation indicating that repayment worsened a health condition. You’ll also need to provide details about your income and living expenses at the time.
Even if you don’t have all this information, you can still apply. However, official guidance suggests that providing as much information as possible will help your application. You can also write a letter addressing the form’s questions and send it along with the form and other necessary documents to: Freepost DWP UNIVERSAL CREDIT FULL SERVICE. Comprehensive information about the Hardship Payment refund can be found on GOV.UK here.
