Official Error and Waiver Statistics 2024/25
As more claimants go through the managed migration to Universal Credit process there is an inevitable increase in the numbers of people impacted by Official Error Overpayments.
Unlike the legacy benefits these claimants have migrated from, under the Universal Credit system, overpayments are recoverable even if they are caused by the error of the Department for Communities (DfC). These claimants have done nothing wrong. They may have received this money over a prolonged period with a legitimate expectation that it would have been correctly calculated and that they were entitled to spend it. When they later find out that DfC had made a mistake and are now seeking recovery, it can cause significant anxiety and hardship. This is why knowledge of the ability to request a discretionary waiver of an overpayment is particularly important under the Universal Credit system.
New statistics obtained by the Law Centre show a 31% increase in Universal Credit overpayments in Northern Ireland caused by official errors. The almost 15,000 official errors in 24/25 equated to more than £10.5 million. We are continuing to call for the official publication of open and transparent data to help encourage a reduction in errors made during the decision-making process.
Why is this data important?
We are arguing that the official publication of open and transparent data relating to overpayments would help to highlight the extent of the issue, identify areas for improvement, increase accountability and ensure that action is taken to reduce the instances of errors.
Rising numbers of households in Northern Ireland are living in financial hardship and poverty. Low-income families simply cannot afford to repay overpayments which occurred through no fault of their own.
Law Centre NI regularly hear directly from our clients about the stress and anxiety that is caused by the recovery of overpayments which have been caused through no fault of their own. This can have a significant impact on their health and wellbeing.
“I was absolutely terrified upon receiving [the] initial letter re overpayments for a sum I had already addressed and believed was resolved. The case worker listened and told me exactly what I needed to do, she supported me right through the process and was efficient, effective and quick. Thank you so much, you will never know the impact you have had on my mental health and the well being of my family. I can’t praise you enough.”
”Mandy” (Law Centre NI Client)
”It can come as a significant shock to claimants to find out that that due to official error, money they had been told that they were entitled to spend must now be repaid. More than 1 in 3 Universal Credit overpayments last year were caused by official error. This compares to less than 1 in 5 overpayments caused by official error for legacy benefits. Releasing annual statistics relating to overpayments caused by official error would make the system more transparent, allow for greater scrutiny of decisions and would promote improved decision-making. No one should have to face financial difficulties because of official mistakes.”
Owen McCloskey
Head of Social Security, Law Centre NI
Raising awareness of Discretionary Waiver
It is possible that a claimant can ask DfC to apply its discretion in the recovery of official error overpayments and waive the repayment. This is known as a ‘Discretionary Waiver.
Following a Law Centre NI campaign in 2022 calling for the Department for Communities to increase awareness of Discretionary Waivers among claimants, DfC now includes information about the option of a Discretionary Waiver in its overpayment notification letters. As a result of our campaign, staff and guidance have also been updated to ensure DfC staff inform claimants that they can request a Discretionary Waiver and that staff are aware that they can waive the recovery of official error overpayments.
There has been an evident increase in the numbers of Universal Credit official error waivers that have been granted since Law Centre’s campaign. The value of UC official error overpayments waived in 24/25 was £264,462. Despite the increase in waivers granted, only 0.4% of Universal Credit overpayments caused by official error were waived last year. This means that 99.6% of Universal Credit overpayments caused by Departmental error are recovered from claimants that were not responsible for the overpayment occurring.
It is important that everyone who meets the criteria for waiver is aware of the possibility and is encouraged to apply. We encourage advisers and claimants to look closely at their options for requesting that an overpayment is waived. A waiver would relieve claimants of the worry of the financial burden of making repayments from an already tight budget.
We have prepared a useful guide with template letters to assist both claimants and advisers request a Discretionary Waiver.
The guide can be found here. Law Centre also delivers expert practitioner led training on how to succeed with waiver and advisers can sign up here.
Opportunities for further improvement
Ultimately Law Centre NI would like to see legislative change so that all overpayments caused by Departmental error are not automatically recovered from claimants. In the meantime, we see one area where there is immediate opportunity for improvement.
Currently DfC identify some clients that are considered too vulnerable to receive a notification in the post that they have to repay an overpayment. In these circumstances DfC arrange for a staff member to visit the claimant so that they can communicate the overpayment in person and answer any immediate questions they may have.
Law Centre NI is calling on DfC to automatically consider discretionary waiver in each of these cases and to assist claimants to provide any necessary further evidence to support the waiver. By identifying that there is risk from notifying of the overpayment, DfC have already potentially identified that this is a claimant that might satisfy its internal guidance on when it is appropriate to waive recovery of the overpayment.
Statistics on Discretionary Waivers across all benefits
Discretionary Waiver is particularly important for benefits such as Universal Credit were official error overpayments are recoverable from claimants. However, Discretionary Waivers are also important for all types of benefits where recovery of the overpayment is having a significant negative impact on the claimant or their family. As the statistics below demonstrate, the majority of claimants that seek a discretionary waiver are granted one. While there has been an annual increase in the numbers of waivers that have been requested there has also been a percentage decrease in the proportion that are granted annually.
Data is also available which breaks down the instances of waivers from benefit to benefit.
Waiver Data for 24/25 Financial Year
| Benefit Type | Waiver Requests | Waivers Granted | Decision Pending |
|---|---|---|---|
| Carers Allowance | 51 | 34 | 8 |
| Cost of Living Payment | 5 | 4 | - |
| Disability Living Allowance | 1 | 1 | - |
| Employment & Support Allowance | 144 | 109 | 3 |
| Income Support | 16 | 13 | - |
| Jobseekers Allowance | 5 | 3 | - |
| Other Benefits | 2 | 1 | - |
| Personal Independence Payment | 1 | 1 | - |
| Pension Credit | 24 | 17 | 1 |
| Tax Credit | 74 | 63 | - |
| Universal Credit Overpayment | 190 | 135 | 6 |
| Universal Credit Advance | 21 | 63 | - |
| Welfare Supplementary Payments | 3 | 3 | - |
| Total Waivers | 538 | 397 | 18 |
Background
- Historically, social security benefit overpayments could only be recovered in situations involving claimant error and claimant fraud. Legally an overpayment that was caused by official error could not be recovered from claimants as they had not caused the overpayment. The underlying principle was that claimants were entitled to assume that the Department would accurately calculate and pay the correct entitlement to benefit.
- Following a change in the law, it is now possible to recover official error overpayments for Universal Credit; New Style Jobseekers Allowance; New Style Employment and Support Allowance and Welfare Supplementary Benefits.
- For several years, Law Centre NI has called for the Department for Communities to officially publish data relating to overpayments and Discretionary Waivers, including the instances of official error overpayments for Universal Credit.
- In 2022, we raised concerns about the change in the law which meant that most benefit overpayments caused by official error are now recoverable – despite being caused by an error in the decision-making process.
- We considered that this could lead to a deterioration in standards of decision-making, given that there is less accountability for mistakes.
- The Freedom of Information response (DFC/2025-0178) has been provided with a note from the Department for Communities explaining that the data provided […] is taken from operational data systems and is not intended for publication. Therefore the data itself is not quality assured to the standard of published Official Statistics.
Law Centre NI can provide advice and assistance on overpayments and discretionary waiver. Contact the social security team on 028 9024 4401, Monday to Friday, 09:30-13:00.
Read our client ‘Rachel’s’ story who contacted our advice line about a Universal Credit Overpayment