Paying off Working Tax Credit overpayment early — Scope | Disability forum
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Paying off Working Tax Credit overpayment early

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Commanded2bwell
Commanded2bwell Community member Posts: 79 Courageous
in Universal Credit (UC)
I was migrated onto UC from working tax credit. Apparently, WTC overpaid me as a result of this, and are now grabbing it back in £50 chunks every month (which stings a bit). There are five months left on the repayment schedule. I have a Help to Save account and have the option to pay off the remaining overpayment with part of the bonus. I'm wondering about possible consequences if I do, such as questions asked about where the money came from, the new powers the DWP have to poke their nose into your account with very little reason, and basically how it might look if a UC claimant on LCWRA suddenly coughs up a couple of hundred quid.

Has anyone else paid off an overpayment early, or knows what might happen if I do?


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  • poppy123456
    poppy123456 Community member Posts: 54,619 Disability Gamechanger
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    There won’t be any questions asked because what your do with your money is your decision. I’ve heard of many people paying off their debt early and not heard anything bad. 

    You may need to contact debt management to pay it off. 
    I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.
    If i see a question that i know the answer to i will try my best to help.
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  • TheManFromLondon
    TheManFromLondon Community member Posts: 268 Pioneering
    edited January 28
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    @Commanded2bwell
    Your help to save account is part of your savings, which should not be over £6000 for UC. If it was you would have told them.

    With that said, you just use your savings to pay a debt. You shouldn't have any problems. Unless, you have over 6k in that account...

    However... they may ask your statement of your "help to save" account. It may trigger a compliance check.

    Source: My sister. She went through that last year when her UC started and the Tax Credits was recalculated and ended up with an overpayment. At the time they were collecting at 10% of her standard allowance. She used her help to save and got a compliance review only 2 months after she started receiving UC.
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  • Commanded2bwell
    Commanded2bwell Community member Posts: 79 Courageous
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    Yes, something like a compliance check was what bothered me. Perhaps I'll pass, especially in light of the sweeping new policing powers that the DWP are trying to sneak past Parliament, embedded in some pensions legislation. In case you're interested, here's a link to a petition to complain about it: https://petition.parliament.uk/petitions/650940

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