Paying off Working Tax Credit overpayment early

Commanded2bwell
Commanded2bwell Online Community Member Posts: 91 Contributor
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?


Comments

  • poppy123456
    poppy123456 Online Community Member Posts: 64,463 Championing
    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. 
  • Commanded2bwell
    Commanded2bwell Online Community Member Posts: 91 Contributor
    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