People who owe money to the Department for Work and Pensions (DWP) are being urged to respond to official letters after new debt recovery powers came into force.
The Government says the measures are designed to target people who can repay benefit debts but repeatedly refuse to do so.
However, a leading debt advice charity has warned there is a risk that some vulnerable people could be mistaken for those deliberately avoiding repayment.
What are the new DWP powers?
The changes, introduced last month under the Public Authorities (Fraud, Error and Recovery) Act, give the DWP stronger powers to recover outstanding benefit debts.
In some cases, the department will be able to seek money directly from a debtor's bank account without first obtaining a court order.
For the most serious cases involving persistent refusal to repay, courts could also disqualify someone from driving.
The new powers will be introduced gradually, with enforcement beginning from October 2026.
In the meantime, the DWP is writing to thousands of people with outstanding benefit debts, urging them to contact the department and agree a repayment plan before tougher enforcement begins.
DWP: We want people to engage
Work and Pensions Minister Andrew Western said: "Hardworking taxpayers deserve a system that pursues those who deliberately dodge their debts, and that is exactly what these new powers deliver.
"To anyone with an outstanding debt - our door is open and DWP will always work with you to find an affordable way to repay.
"But for those who can pay and won't - we're going further than ever before to claw back cash and crack down on fraud."
The Government says the measures form part of its plan to save £14.6 billion over the next five years by tackling fraud, error and unpaid debts.
Anyone who owes money can find out more about how to repay it here.
Debt charity urges safeguards
Money Wellness, which provides free debt advice to more than 1,000 people every day, says it supports action against people who deliberately refuse to repay benefit debts.
However, it says there is an important distinction between those who won't pay and those who can't pay.
Rebecca Lamb, External Relations Manager at Money Wellness, said: "People who deliberately avoid repaying debts should be held accountable. Our concern is making sure that people experiencing vulnerability aren't mistaken for people who are refusing to engage."
She said many of the people the charity supports are dealing with serious health conditions, financial hardship or caring responsibilities. "Many of the people we support are dealing with serious illness, poor mental health, caring responsibilities or financial hardship.
"Some struggle to understand complex correspondence. Others are overwhelmed by their circumstances and stop opening letters altogether.
"From the outside, that can sometimes look like non-engagement. In reality, it can be a sign that somebody needs support."
Not every benefit overpayment is fraud
Money Wellness also pointed out that not all benefit overpayments arise because of fraud.
According to DWP figures, around £900 million of the £6.35 billion in Universal Credit overpayments recorded in the year to March 2025 resulted from claimant mistakes or official error rather than fraud.
Rebecca Lamb said: "Benefit rules can be complicated. Changes in income, overtime payments, workplace pensions or changes in personal circumstances can all affect entitlement.
"For many people, these are genuine mistakes rather than deliberate attempts to claim money they aren't entitled to."
The charity says this highlights the importance of giving people the opportunity to explain their circumstances before enforcement action is taken.
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Why acting straight away matters
- The DWP says anyone who receives a debt recovery letter should contact the department as soon as possible.
- People who engage with the DWP and agree an affordable repayment plan can avoid enforcement action.
- The department has also said staff can signpost people to free debt advice services where appropriate.
Money Wellness is encouraging anyone struggling with benefit debts not to ignore official correspondence and to seek free independent advice as early as possible.
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