Latest news with #MoneyandMentalHealth
Western Telegraph
21-07-2025
- Business
- Western Telegraph
DWP urgent changes needed says Martin Lewis charity
The Money and Mental Health Policy Institute said some people are being subjected to sudden and severe debt collection practices, causing financial hardship and distress for people in vulnerable circumstances. Benefits overpayments may happen when the Department for Work and Pensions (DWP) pays more in benefits such as universal credit than someone is entitled to, perhaps due to changes in someone's circumstances or an error. The charity said that overpayments can accumulate for months unbeknown to recipients, but the DWP can rapidly take payment within weeks of identifying an issue. It added that the DWP can directly deduct 15% of someone's monthly universal credit payment if they have been overpaid benefits. For a single adult aged 25 and over, 15% of a monthly universal credit payment can amount to £60-a-month – causing a significant income shock for people who have a low income – the charity argued. It contrasted the situation with commercial lenders, who would go through the courts, a process which could take months, to forcibly take money from someone's income. 🚨 NEW REPORT 🚨 The harsh way that the government treats people who have been overpaid benefits is causing serious financial hardship and distress. And people with severe mental illness are disproportionately affected. Read more in our new report: — Money and Mental Health (@mmhpi) July 17, 2025 The charity said some people may find the messaging that benefit money is going to be recouped from them alarming, with people receiving messages on their online accounts stating that they have been paid more in universal credit than they were entitled to and this will now be taken back. It said that while people can call the Government to try to negotiate an affordable plan, people may not clearly understand this from the messaging. Meanwhile, consumer creditors such as banks, credit card companies, water companies and energy companies are required by regulation to engage extensively with people who owe money, Money and Mental Health said. The charity, which carried out research into the issue, said one person had said: 'Having money deducted from my benefits has made it difficult for me to make ends meet and some days I have been not eating because I can't afford to, which is leaving my mental health in tatters.' It also highlighted that the DWP is gaining more powers via the Public Authorities (Fraud, Error and Recovery) Bill currently passing through Parliament. In particular, the DWP should proactively assess how much people can afford to repay, the charity said. It suggested that, for example, the DWP could mirror the approach taken by consumer creditors in assessing someone's income and essential outgoings, and then giving people a 'real chance' to negotiate an affordable repayment plan. The charity also said that debt management standards guidance on how to protect people in vulnerable circumstances from harm, including people with mental health problems, should be strengthened for all government departments. If you are overpaid by even 1 penny per week, you are charged a week of which ever benefits you claim each time you're overpaid. The DWP should be more careful instead of trying to squeeze money out of people that they don't have — Atlanta 🦹🏻♀️ #DisabilityRebellion (@areyoflight) May 5, 2025 Helen Undy, chief executive of the Money and Mental Health Policy Institute, said: 'The Government's harsh treatment of people who've been overpaid benefits is reminiscent of the carers' allowance scandal. 'When people are paid more in universal credit than they are entitled to, it's often through no fault of their own, and sometimes the first they know of it is when the Government takes sudden and brutal steps to claw those payments back. Many people we work with are already running out of money for food before the end of the month, suddenly taking £60 from what they have left plunges them into further financial hardship and needless distress. 'The Government has pledged to overhaul how it reclaims carers' allowance, now it needs to do the same for how it collects universal credit overpayments. Above all, that means proactively giving people a real chance to negotiate a payment plan that they can actually afford, instead of just taking money out of people's income with barely any warning. 'We'd also like to see better standards applied across all government debt collection. It cannot be right that the state is lagging far behind the standards that consumer creditors have to meet in treating people fairly and with respect if they fall behind on payments.' Recommended reading: A DWP spokesperson said: 'While we would urge people to report a change in circumstances to avoid falling into debt, we understand debts do occur and will always support those struggling with repayments to agree affordable plans. 'Our new Fraud Bill will help us to identify overpayments at the earliest stage so we can help prevent people falling into debt, and to do so in a way that is fair and proportionate.' Agents within the Department's debt management team refer customers to the Money Advice Network who offer free, impartial and independent debt advice. The DWP also remains committed to the Treasury's Breathing Space policy, which provides those with problem debt the right to legal protections from creditor action for a set period to enable them to receive debt advice and enter an appropriate debt solution.
South Wales Argus
20-07-2025
- Business
- South Wales Argus
DWP urgent changes needed says Martin Lewis charity
The Money and Mental Health Policy Institute said some people are being subjected to sudden and severe debt collection practices, causing financial hardship and distress for people in vulnerable circumstances. Benefits overpayments may happen when the Department for Work and Pensions (DWP) pays more in benefits such as universal credit than someone is entitled to, perhaps due to changes in someone's circumstances or an error. The charity said that overpayments can accumulate for months unbeknown to recipients, but the DWP can rapidly take payment within weeks of identifying an issue. It added that the DWP can directly deduct 15% of someone's monthly universal credit payment if they have been overpaid benefits. For a single adult aged 25 and over, 15% of a monthly universal credit payment can amount to £60-a-month – causing a significant income shock for people who have a low income – the charity argued. It contrasted the situation with commercial lenders, who would go through the courts, a process which could take months, to forcibly take money from someone's income. 🚨 NEW REPORT 🚨 The harsh way that the government treats people who have been overpaid benefits is causing serious financial hardship and distress. And people with severe mental illness are disproportionately affected. Read more in our new report: — Money and Mental Health (@mmhpi) July 17, 2025 The charity said some people may find the messaging that benefit money is going to be recouped from them alarming, with people receiving messages on their online accounts stating that they have been paid more in universal credit than they were entitled to and this will now be taken back. It said that while people can call the Government to try to negotiate an affordable plan, people may not clearly understand this from the messaging. Meanwhile, consumer creditors such as banks, credit card companies, water companies and energy companies are required by regulation to engage extensively with people who owe money, Money and Mental Health said. The charity, which carried out research into the issue, said one person had said: 'Having money deducted from my benefits has made it difficult for me to make ends meet and some days I have been not eating because I can't afford to, which is leaving my mental health in tatters.' It also highlighted that the DWP is gaining more powers via the Public Authorities (Fraud, Error and Recovery) Bill currently passing through Parliament. In particular, the DWP should proactively assess how much people can afford to repay, the charity said. It suggested that, for example, the DWP could mirror the approach taken by consumer creditors in assessing someone's income and essential outgoings, and then giving people a 'real chance' to negotiate an affordable repayment plan. The charity also said that debt management standards guidance on how to protect people in vulnerable circumstances from harm, including people with mental health problems, should be strengthened for all government departments. If you are overpaid by even 1 penny per week, you are charged a week of which ever benefits you claim each time you're overpaid. The DWP should be more careful instead of trying to squeeze money out of people that they don't have — Atlanta 🦹🏻♀️ #DisabilityRebellion (@areyoflight) May 5, 2025 Helen Undy, chief executive of the Money and Mental Health Policy Institute, said: 'The Government's harsh treatment of people who've been overpaid benefits is reminiscent of the carers' allowance scandal. 'When people are paid more in universal credit than they are entitled to, it's often through no fault of their own, and sometimes the first they know of it is when the Government takes sudden and brutal steps to claw those payments back. Many people we work with are already running out of money for food before the end of the month, suddenly taking £60 from what they have left plunges them into further financial hardship and needless distress. 'The Government has pledged to overhaul how it reclaims carers' allowance, now it needs to do the same for how it collects universal credit overpayments. Above all, that means proactively giving people a real chance to negotiate a payment plan that they can actually afford, instead of just taking money out of people's income with barely any warning. 'We'd also like to see better standards applied across all government debt collection. It cannot be right that the state is lagging far behind the standards that consumer creditors have to meet in treating people fairly and with respect if they fall behind on payments.' Recommended reading: A DWP spokesperson said: 'While we would urge people to report a change in circumstances to avoid falling into debt, we understand debts do occur and will always support those struggling with repayments to agree affordable plans. 'Our new Fraud Bill will help us to identify overpayments at the earliest stage so we can help prevent people falling into debt, and to do so in a way that is fair and proportionate.' Agents within the Department's debt management team refer customers to the Money Advice Network who offer free, impartial and independent debt advice. The DWP also remains committed to the Treasury's Breathing Space policy, which provides those with problem debt the right to legal protections from creditor action for a set period to enable them to receive debt advice and enter an appropriate debt solution.
The Independent
18-07-2025
- Business
- The Independent
Martin Lewis' charity says DWP is ‘more aggressive than banks' in clawing back debt
The Department for Work and Pensions (DWP) is carrying out 'aggressive and rapid' debt collection practices which are more severe than most banks, a charity founded by Martin Lewis has claimed. The Money and Mental Health (MMH) Policy Institute says that the way the DWP treats people who are overpaid benefits is 'harsh', and risks putting vulnerable claimants at risk. Benefit overpayments occur when someone is paid more by the DWP than they are entitled to, most often because of a change in their circumstances or due to a an error by the department. While these overpayments can accumulate over the course of many months without the claimants' knowledge, the DWP can rapidly begin taking payment within weeks of spotting the issue. Agents can then directly deduct 15 per cent of someone's monthly universal credit payment to recoup these overpayments. This can be a significant loss of income, MMH argues, with 15 per cent equating to a deduction of around £60 a month for a single adult aged 25 and over. Meanwhile, commercial lenders would need to go through the courts to recoup debts, in a process which could take months. Ahead of an expansion of the DWP's debt recovery powers, researchers from MMH argue that its powers should be reformed to be more manageable for those on low incomes. The Public Authorities (Fraud, Error and Recovery) Bill currently passing through Parliament will give the DWP more ways to recover debt, including forcing banks to share account holders' transactions, and being able to make direct deductions even from people no longer on benefits. The charity also argues that many people are unaware they are able to call the DWP to try to negotiate an affordable repayment plan. This process could be brought more in line with consumer laws they add, with creditors like banks and energy companies required by regulation to engage with people who owe money. The charity, which carried out research into the issue, said one person commented: 'Having money deducted from my benefits has made it difficult for me to make ends meet and some days I have been not eating because I can't afford to, which is leaving my mental health in tatters.' The charity also said that debt management standards guidance on how to protect people in vulnerable circumstances from harm, including people with mental health problems, should be strengthened for all government departments. MMH chief executive, Helen Undy, said: 'When people are paid more in Universal Credit than they are entitled to, it's often through no fault of their own, and sometimes the first they know of it is when the government takes sudden and brutal steps to claw those payments back. 'Many people we work with are already running out of money for food before the end of the month, suddenly taking £60 from what they have left plunges them into further financial hardship and needless distress.' Ms Undy adds that the charity would 'like to see better standards applied across all government debt collection,' adding: 'It cannot be right that the state is lagging far behind the standards that consumer creditors have to meet in treating people fairly and with respect if they fall behind on payments.' A DWP spokesperson said: 'While we would urge people to report a change in circumstances to avoid falling into debt, we understand debts do occur and will always support those struggling with repayments to agree affordable plans. 'We have introduced a new Fair Repayment Rate, which caps debt repayments made in Universal Credit at 15%, allowing 1.2 million households to keep more of their Universal Credit. 'Our new Fraud Bill will help us to identify overpayments at the earliest stage so we can help prevent people falling into debt, and to do so in a way that is fair and proportionate.'
The Independent
09-04-2025
- Business
- The Independent
Nationwide receives ‘advanced' mental health accessibility rating from charity
Nationwide Building Society has been awarded an 'advanced' mental health rating by a charity founded by consumer champion Martin Lewis. The Money and Mental Health Policy Institute, which made the award, said Nationwide is the first building society to receive the advanced rating for its Mental Health Accessible accreditation. The Mental Health Accessible programme works with essential services firms such as banks and energy and water providers, to help them understand the difficulties customers with mental health problems can face using their services, and how they can improve support. The charity said the award recognises steps Nationwide has taken and progress it has made after working with Money and Mental Health to make its services more accessible. It looked at how accessible Nationwide's services, communications and products are for people with mental health problems, including in-depth interviews with Nationwide staff and incorporating feedback on how services could be improved. Steps that Nationwide has taken include staff training with 'lived experience' insights to highlight issues customers with mental health problems may face; simplifying the process for identifying, recording and supporting customers across a range of needs; and Nationwide's specialist support team having the ability to refer customers to Mental Health UK, which can offer one-to-one assistance. The advanced rating is the second of three, progressively more demanding levels of accreditation an organisation can achieve through the scheme – the first being 'essentials' and the third being 'leading the way'. The programme was set up after Money and Mental Health's research found that customers with mental health problems can struggle when engaging with essential services, which may include difficulties using the phone or 'admin anxiety' which makes managing accounts challenging. The Money and Mental Health Policy Institute is an independent charity set up by Mr Lewis, and has a commitment to breaking links between financial difficulties and mental health problems. Get a free fractional share worth up to £100. Capital at risk. Terms and conditions apply. Helen Undy, chief executive of Money and Mental Health, said: 'When you're struggling with your mental health, communicating with your bank or building society can be a stressful and energy-draining experience. 'Common symptoms like feeling easily overwhelmed or having difficulty processing information can make this process feel like an uphill climb. 'But Nationwide has demonstrated that firms can take steps to recognise the challenges that customers with mental health problems may face and to adapt their support, products, communications and services accordingly. 'With one in four people experiencing a mental health problem each year, it's vital that firms have services which are accessible and inclusive to a large proportion of their customer base. 'Money and Mental Health is keen to work with other firms across the financial services and essential services sectors to improve their services for customers with mental health problems.' Kathryn Townsend, Nationwide's head of customer vulnerability, said the Society is 'delighted' at the award, adding: 'We recognise there's no 'one-size-fits-all' solution to supporting customers with mental health problems.'
The Independent
27-02-2025
- Business
- The Independent
Martin Lewis charity to be given new special powers
A charity established by consumer advocate Martin Lewis to address the damaging interplay between financial struggles and mental health has been put forward for "super complainant" status. This allows the Money and Mental Health Policy Institute to expedite the handling of specific consumer protection issues. The enhanced status, recommended by the Department for Business and Trade, is anticipated to be formally granted in April following the necessary legislative amendments. It will enable the charity to lodge super complaints with the Competition and Markets Authority (CMA) concerning consumer detriment arising from market failures or detrimental business practices across various sectors, including consumer retail and energy. This authority stems from the Enterprise Act 2002. The new powers will allow the institute to "bump specific issues up the list" for regulatory scrutiny. If the charity takes forward a super complaint, the CMA has to respond within 90 days. In general, potential actions that may arise following super complaints can include enforcement action, recommending changes to the law or a further investigation into the issues. The charity said it has also applied to the Treasury for equivalent powers to make super complaints to the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR). Money and Mental Health founder and chair Martin Lewis said: 'We're very grateful for this new status. In plain terms it means that if we do detailed formal authoritative research on an issue of consumer harm the CMA must respond, and it is also a strong push for it to consider a formal investigation. In effect it means we have a power to bump specific issues up the list.' He added: 'As well as the formal powers super complainant status bestows, it's also a kite mark of the charity's research quality, showing the authority that the talented Money and Mental Health team bring to their work. That too is useful, as when talking to firms and regulators, they know if needed and action isn't happening, we have an extra way to escalate issues. 'I set up the charity because money problems and mental health issues are a marriage made in hell. They feed off each other. People who have mental health problems are over three times more likely to be in debt than the rest of the population. This step-up will help us continue our work to try to soften the link between the two.' Other organisations which have been given powers to make super complaints include Which? and Citizens Advice.
