Obviously, these types of losses attributed to overpayments are both material and significant. Additionally, it is the responsibility of all stakeholders to return any overpayment because every buyer is a seller at some point.
The standard time in which debts should be reclaimed by the DWP is six years. You can put in a defence if they issue you a county court claim for a benefit overpayment older than six years. Seek legal advice for this.
Deductions from Universal Credit If you are receiving Universal Credit and have some earned income, the maximum amount that can be deducted from your Universal Credit for overpayments is 25% of your standard allowance.