New figures from the Department for Work and Pensions (DWP) show there were 7.2 million people across Scotland, England and Wales receiving financial support through Universal Credit at the end of October. However, people who took out a Hardship Payment from Universal Credit between January 1, 2014 and January 11, 2021, may be due a refund.
People can ask the DWP to review its decision that the Hardship Payment must be repaid before the deadline on May 4, 2025. DWP explains: “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.”
People may be eligible for a refund if DWP refused a request to consider either:
- stopping (‘waiving’) their repayments, or
- reviewing the rate of repayment
People can get support to complete an application by calling the scheme helpline on 0800 158 5557.
Eligibility
You can ask DWP to review its decision not to stop the repayment of your hardship payment if all of the following apply:
- 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 will also need to show that either:
- 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
How to apply
Fill in the application form on GOV.UK here and apply before May 4, 2025.
You will need to provide evidence from the time you made the initial request. It will need to show that:
- you could not afford to repay your hardship payment, or
- the hardship payment affected your or your family’s health or wellbeing
This could include:
- financial information from the time, such as bank statements, information about loans, or letters from creditors
- information from a doctor or other medical professional saying that repaying the money caused a health condition or made it worse
You will also need to provide information about your income and living costs at the time. If you do not have all of this information, you can still apply. However, guidance on GOV.UK says it will help your application if you can give as much information as possible.
You can also write a letter that answers the questions on the form, send the form and other documents to: Freepost DWP UNIVERSAL CREDIT FULL SERVICE.
Full details about the Hardship Payment refund can be found on GOV.UK here.