Almost 15,000 Universal Credit recipients say they have been wrongly ordered to pay back Universal Credit payments.

The report comes as the Government tries to retrieve the £500m that it gave out during the height of the pandemic.

Among those who are being asked to return the money are those who missed phone calls or messages from The Department for Work and Pensions (DWP) carrying out retrospective checks, reports The Independent.

125,000 people have been told by the DWP that they were not eligible for the payments.

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They now owe thousands due to Covid putting a stop to face-to-face identity checks at the beginning of the first lockdown.

If an individual 'does not provide evidence/fully engage in the process', they could be judged to be the recipient of an over-payment.

Figures reveal that around 14,500 people are appealing against the pay-back orders, some having been pursued by debt collectors.

Jonathan Ashworth, Labour's shadow work and pensions secretary, said: “It's shameful that ministers are pursuing what could be thousands of people for debt they do not owe, in the middle of a cost-of-living crisis.

"Instead of parading around supporting their chosen leadership candidates, ministers in the DWP should be focused on their day jobs and solving the pressing problems in their department.”

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The number of people on Universal Credit in the UK doubled in the first year of the pandemic, increasing to six million in January 2021. In May 2022, 5.6 million people claimed the benefit.

Universal Credit over-payment rates are at their highest on record, at 13 per cent (£5.3billion) in 2022, compared with 12.8 per cent (£4.9billion) in 2020, and 6 per cent in 2019, according to DWP figures.

Claire Hall, a lawyer at the Child Poverty Action Group, which has helped those who have been wrongly asked to pay back Universal Credit, said thousands of people could be affected. She also raised the alarm about the delays and complexities of the appeal process.

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She said: “It’s very unfair on claimants that they’ve been given these debts and told they owe this money with no proper basis. It’s hugely stressful for people, especially with the timing of it all, when people are just recovering from the pandemic and getting back on their feet.”

In a comment to the Independent, a DWP spokesperson said: “During the pandemic, we rightly prioritised ensuring the welfare safety net reached those suddenly in difficulty.

“We have been contacting claimants via their preferred contact method to discuss aspects of claims we need to verify, and given them two weeks to respond. If we are belatedly provided evidence proving entitlement, we will reinstate benefit and cancel any debt straight away.”

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