A frantic state pensioner has written to tax experts for help after the Department for Work and Pensions (DWP) began clawing back an overpayment from his state pension. The pensioner, who wished to remain anonymous, said he was alarmed to receive a letter on April 22 from DWP Debt Management informing him of their intention to take £160.86 from his benefit every fortnight until the amount owed was repaid.
Overpayment of Child Tax Credit
The deduction stems from overpayments of child tax credit made to his wife, for which both are equally responsible. His wife is already repaying £36.19 per month. The pensioner called Debt Management in a panic, explaining that he does not receive any benefit, only a state pension. He was told that the state pension is regarded as a benefit under their policy.
Harrowing Experience
The pensioner said he contributed all his working life to a pension and questioned whether it can truly be termed a benefit. He expressed concerns that deducting £160.86 would leave him unable to pay monthly utility bills. After being asked not to get upset, a deduction of £15.66 every two weeks was suggested, which he agreed to. However, he later received a letter dated May 5 stating that £87.93 would be taken every fortnight, and on May 14 his pension was cut by that amount, causing further anguish.
The pensioner called Debt Management again to say he could not pay all his direct debits and thought they had an agreement. He received an apology and assurance of a refund, minus the amount he had agreed to pay. He is relieved to say the refund was received today. He described the experience as very harrowing.
