Benefit Overpayment Help & Advice
Received a letter about a benefit overpayment? PennyPlan’s specialists are here to give you clear, confidential advice and guide you through your options.
- Write off 75%* of unaffordable debt
- One lower monthly payment
- Stop creditor hassle and bailiffs
- Access mental well-being services
Your credit rating may be affected if you opt for a debt solution.
Rated Excellent
100% FREE ADVICE
Get information today on your available options
Worried About Paying Back A Benefit Overpayment?
Getting a letter about a benefit overpayment can feel overwhelming, especially if it comes from the DWP, HMRC, or your local council. Many people fear it means they’ve done something wrong, but overpayments are often caused by changes in circumstances or administrative errors rather than fraud.
Once an overpayment is identified, it’s usually treated as money that has to be repaid. For some, that means deductions from ongoing benefits. For others, it could mean repayment demands that feel difficult to manage on top of everyday costs.
At PennyPlan, we’ll help you understand exactly what the letter means, what your rights are, and the options available if repayment feels unaffordable. Our advice is free, confidential, and focused on giving you a clear path forward.
.
As seen on:
We Help With Most Debts - Not Just Benefit Overpayments!
*Mortgage debt can be included if you no longer own the property in question.
Example Of An IVA
UNSECURED DEBTS
Your Monthly Repayments:
Find out for FREE what debt help is available to you
Subject to creditor acceptance. Payment subject to individual circumstances.
Credit Rating may be affected. Fees apply, subject to individuals circumstances.
Reasons To Choose PennyPlan
- Stop all interest & charges
- Write off debt
- Access well-being services
- Reduce monthly payments
How To Deal With Benefit Overpayment Demands
If you’ve received a demand to repay a benefit overpayment, it can feel daunting, especially when the figures seem unmanageable alongside everyday costs. While overpayments are normally treated as money that must be repaid, there are ways to make the process more affordable.
Depending on your circumstances, you may be able to set up a repayment plan directly with the DWP, HMRC, or your local council. If the payments they ask for feel too high, it’s possible to request a more affordable arrangement that reflects your income.
For those already juggling other debts, a benefit overpayment can often be included in a wider debt solution such as a Debt Management Plan (DMP) Individual Voluntary Arrangement (IVA), or Debt Relief Order (DRO). These options can lower monthly payments, reduce pressure, and give you a structured way forward.
Repayment Options For Benefit Overpayment Debt
Dealing with a benefit overpayment can feel overwhelming, but there are ways to bring repayments under control. Depending on your circumstances, overpayments can often be included in wider debt solutions:
IVA
Individual Voluntary Arrangement
An Individual Voluntary Arrangement (IVA) allows multiple debts to be combined into one affordable monthly payment. Benefit overpayments can usually be included, provided they aren’t linked to fraud. At the end of the IVA, some of the remaining debt may be written off.
DMP
Debt Management Plan
A Debt Management Plan (DMP) lets you repay debts at a lower, more manageable rate. Benefit overpayments are often included in a DMP, meaning you make one monthly payment each month to cover them alongside other debts at an affordable level.
DRO
Debt Relief Order
A Debt Relief Order (DRO) is designed for people with low income and few assets. If you qualify, benefit overpayments can be included, and the debt may be written off after 12 months. DROs are only available if your total debt is below a set threshold and not linked to fraud.
Find Out For FREE What Debt Help Is Available To You
Get Help With Benefit Overpayments Today
We’ve helped people across the UK take control of their debts and get their lives back on track. Our trained advisers will assess your individual situation and guide you towards the best way to manage and resolve your finances.
Do I Qualify
For an IVA?
100% FREE ADVICE
Get information today on your available options
Get Help With Benefit Overpayments Today
Benefit overpayments can quickly feel overwhelming, especially when repayment demands start arriving on top of other household costs. It’s easy to feel like there’s no way forward, but support is always available.
At PennyPlan, we’ll listen to your situation, explain your options in plain language, and help you take the pressure off. Whether it’s setting up an affordable repayment plan or exploring formal debt solutions, our advice is free, confidential, and focused on what’s best for you.
Take the first step and talk to our team today.
- One lower monthly payment
- Write off 75%* of unaffordable debt
- Freeze interest & charges
- Stop legal action including bailiffs
- Receive FREE well-being sessions
What Happens If You Don’t Repay A Benefit Overpayment?
If a benefit overpayment isn’t repaid, the organisation that issued it such as the DWP, HMRC, or your local council can take action to recover the money. This might include deductions from your ongoing benefits, recovery from your wages, or, in some cases, legal enforcement through the courts.
While this can sound worrying, there are always options to manage the situation before it reaches that stage. Affordable repayment plans can often be arranged, and if the amount feels unmanageable, debt solutions may help bring the overpayment into one structured plan.
The key is not to ignore the letter. By acting early and getting the right advice, you can take back control and prevent the overpayment from becoming an even bigger source of stress.
Tackle Your Debt And Your Mental Health In One Place
Our team are committed to getting your finances and well-being back in top condition
Apply for our eligibility check
Find out if you match the minimum criteria we require to enter you into one of our IVA plans
Speak to our debt specialists
Speak to our friendly debt specialists, who will explain all the options available to you.
Choose your debt solution
Now you have all the options available, you can make an informed decision that is right for you and your family.
Do I Qualify
For an IVA?
What Our Customers Say About Us
Maria
3 days ago
PennyPlan were extremely professional and genuinely caring, I am very happy that I made the call and now have a plan in place and peace of mind. From the first contact to the signing of the agreement it was straight forward and simple plus the staff really are exceptional in the way they listen and understand’ I couldn’t have asked for a better company.
Emily
4 days ago
For over a decade I have kept my money worries to my self away from friends and family one phone call with Leah and I had laid it all bare without a second thought nothing shocked her and nothing wasn’t sortable I’m forever grateful I stumbled across this company and no longer have to worry about money on my own. Highly recommend!!
Daniel
4 days ago
PennyPlan offered insightful, professional and empathetic support throughout my insolvency. Declan in particular was friendly, personable and knowledgeable, and a massive help throughout the process. They offer a no pressure service and allow you to make the best decision for yourself. I highly recommend these guys for anyone struggling with debt.
Mark
1 week ago
I was hesitant in applying for an IVA, But my mind was put at ease on the first call. The whole process was explained to me with complete care and understanding and I didn’t feel judged at all. Since being accepted for the IVA my mental health has improved so much and I now don’t worry about how I am going to put food on the table each week.
Benefit Overpayment FAQs
In most cases, yes. Benefit overpayments are treated as money owed to the DWP, HMRC, or your local council. Even if the overpayment wasn’t your fault, they will usually ask for repayment.
No. Most overpayments are caused by administrative errors or changes in circumstances, not fraud. Fraud is treated separately and involves deliberate action, whereas overpayments are usually just a repayment issue.
Yes. If you believe the overpayment is incorrect, you can appeal. This is sometimes called a “mandatory reconsideration.” It’s important to act quickly, as there are time limits for appeals.
Often, yes. Overpayments can usually be included in solutions like an IVA, DMP, or DRO, as long as they’re not linked to fraud. This can make repayments more affordable.
If repayments feel unaffordable, you can ask for lower instalments or explore formal debt solutions. The important step is to seek advice before the situation escalates.