For people on benefits, overpayments are usually recovered by reducing your ongoing payments. The Universal Credit standard deduction cap is set as a percentage of the standard allowance — for many people this is meaningful money each month.
For people not on benefits, HMRC and DWP can arrange direct repayment plans, use Direct Earnings Attachments (deducting from your wages via your employer), or pass the debt to a private collector. County Court action is possible but relatively rare.
If a deduction is causing hardship, you can ask for it to be reduced. There is a formal process for this — the DWP has a hardship threshold and will consider your income, essential outgoings and other priority debts. A short conversation with an adviser can often halve a deduction.
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