DWP Plans New £50m ‘Debt-Management System’

DWP blocks £1bn Universal Credit incorrect payments - Credit Connect

More than £1 billion in incorrect Universal Credit (UC) payments have been blocked by the Department for Work and Pensions (DWP) in a drive to stop people falling into financial difficulties. The milestone was reached after a programme to review payments was ramped up last summer, with more than one million cases now looked at. Overpayments can ultimately lead to financial difficulties for claimants by causing them to fall into debt. The ‘Target…

DWP plans new £50m ‘debt-management system’

The department will appoint a provider to a contract potentially lasting for 11 years, and covering the creation of a major new platform, and migration from the current generic tool The Department for Work and Pensions is planning to invest almost £50m to design and deploy a new system for managing debt owed to the organisation. As of the end of the 2023-24 year, the DWP is owed £9.4bn across a total of 5.2 million debtors, according to the depa…