The Department for Work and Pensions (DWP) has announced a scheme that could allow certain Universal Credit claimants to receive a refund. The initiative applies to a specific group of individuals who met certain conditions within a defined timeframe.
Eligible claimants are encouraged to review their circumstances and submit an application before the deadline. The information was originally reported by DevonLive.
Who Is Eligible for a Refund?
The Hardship Payment is an advance provided to Universal Credit claimants who faced financial difficulties due to a reduction in their benefits. This reduction typically resulted from sanctions applied by the DWP or penalties related to fraud investigations.
Claimants who were required to repay these hardship funds, despite financial difficulties, may now be eligible for a refund if they applied to waive the repayment and were denied.
To qualify, individuals must meet specific criteria. They must have requested a waiver or a reconsideration of their repayment between 1 January 2014 and 11 January 2021, and the DWP must have either refused their request or declined to consider it.
Additionally, applicants must demonstrate that they were unable to afford the repayment at the time or that making the payment had a significant negative impact on their health or wellbeing.
The DWP’s decision to review Hardship Payment repayments follows concerns that some claimants were required to make repayments despite experiencing significant financial hardship.
The department has set out clear guidelines on the types of evidence required and the process for claimants to follow. Official information, including the application form and eligibility details, is available on GOV.UK.
Claimants who believe they were unfairly denied a waiver should review their financial and medical records from the relevant period to determine whether they can provide supporting documentation.
The DWP has emphasised that the 4 May 2025 deadline is final, and late applications will not be considered.
How to Apply for a Refund
Individuals who believe they meet the eligibility criteria can submit an application through the official GOV.UK website before the 4 May 2025 deadline. Applicants are required to provide supporting evidence to strengthen their claim.
This may include financial records such as bank statements, details of loans, or letters from creditors. Claimants can also submit medical documentation from a doctor or another healthcare professional if they experienced health issues due to financial hardship caused by repayment obligations.
Applicants will also need to provide information about their income and living expenses at the time of their original request for a repayment waiver.
The DWP has stated that individuals who do not have access to all required documentation should still apply, as partial evidence may be sufficient to support their case.
For those who prefer to submit their application by post, they can send the completed form along with any supporting documents to Freepost DWP UNIVERSAL CREDIT FULL SERVICE.
Contacting the DWP
Individuals seeking further assistance with their application or requiring clarification on eligibility criteria can contact the DWP helpline at 0800 158 5557.
The department has advised claimants to submit their applications as soon as possible to allow adequate time for processing.
