Recipients of benefits from the Department for Work and Pensions (DWP) are reporting unexpected payments appearing in their bank accounts, identified as refunds. These payments, accompanied by a six-digit code labeled “DWP RFD”, have left many in confusion.
Experts suggest that these refunds are likely to correct previous underpayments or to address administrative discrepancies, but claimants are still uncertain about their exact nature.
A Surge of Unexpected Payments
Many claimants of Universal Credit and other DWP benefits have shared their experiences online of receiving unanticipated payments with the code “DWP RFD” in their bank statements.
One claimant wrote: “Hello, I have got just an unexpected payment of 63 £ from dwp. In my bank statement, it is saying: my NINO and then DWP RFD. Do someone has an idea what it could be? Got someone the same kind of payment?”
This confusion is common, as recipients haven’t been notified in advance about these payments. Several users speculated that “RFD” could stand for “refund” or “reason for decision,” but no clear explanation was provided by the DWP at the time. Some claimants have indicated that they plan to contact the DWP for further clarification.
What Does “DWP RFD” Actually Mean?
Experts have identified these payments as “refunds,” with the acronym “RFD” standing for Refund. This typically means the DWP is correcting a previous underpayment. There are several reasons why claimants might receive such refunds.
One possibility is that a claimant was previously underpaid due to administrative errors or delays in processing changes to their personal circumstances. For instance, if the DWP did not update a claimant’s income or household information in time, they may have received less than they were entitled to.
Refunds like these can also result from changes in benefit entitlements, such as adjustments for inflation or rising living costs. These payments ensure that claimants are compensated for any shortfall in previous benefits.
According to experts, claimants who receive such refunds should check their online journal or payment statements in their Universal Credit account, where the DWP typically provides details about the refund, including the reasons for the adjustment.
