Have You Had Money Taken From Your State Pension Without Warning?
As of the 2022–2023 tax year, approximately 509,000 tax credit claims in the UK were overpaid. This represents 35% of all tax credit awards for that period. The average overpayment amount was £1,041 per claim.
More and more people are discovering that the Department for Work and Pensions (DWP) is deducting money from their State Pension, often without any proper discussion. This is due to alleged overpayments of tax credits from years ago.
Here’s how it happens:
You apply for tax credits and give an estimate of your income. Then, months or even years later, HMRC claims you were “overpaid” and demands repayment, sometimes thousands of pounds. Even if you’ve agreed to a small monthly repayment, you may suddenly find your State Pension slashed without warning.
In some recent cases, people received multiple letters in a single day with different deduction amounts, leaving them in shock. One person was told their pension would be cut from £890 to just £660 a month, despite already paying £30/month toward the debt!
This system is broken. Deductions like this, without proper warning, explanation, or fair appeal, are causing unnecessary stress for people already on tight budgets.
If this has happened to you, share your story below. It’s time to shine a light on this.
Get in touch we may be able to help. www.goldenshieldservices.co.uk
