Thousands due government refund to receive letter | UK | News

The government released a financial update today (May 16) targeting thousands of people in the UK, informing them that ‘refunds are still available’. So far, letters have been sent to 5,000 people eligible for a refund.

About 1,000 responses have been received, and up to £65,000 has been reimbursed since March. But another round of letters will be dispatched to the remaining 4,000 people the government is waiting on to collect their funds.

The Insolvency Service is working to refund money to 4,000 individuals in the UK who contributed towards a debt relief order (DRO) but never completed their application. Prior to April 2024, there was a £90 fee required for submitting a DRO application, which could be paid in full or in instalments.

Unfortunately, many people paid this fee but did not finalise their applications. In April 2024, the Government eliminated the £90 fee to simplify the process for those struggling with debt and to ensure they can access the necessary support.

The Insolvency Service currently has £500,000 available to reimburse those who made payments for these incomplete applications dating back to 2016.

On the gov.uk website, senior leader in the Personal Insolvency Team at the Insolvency Service, Caroline Shanahan, said: “We sent letters to all 5,000 people who are due a refund, but many of them have not come back to us. There are still about 4,000 people who have not responded. We want to return their money as soon as possible, but they need to contact us after receiving the letter.

“In some cases, people may have changed their email address or moved home, meaning we do not have their current details to contact them. Those people can still apply for a refund if they paid towards a debt relief order that was not submitted; they just need to get in touch and let us know.”

People can apply for DROs through authorised intermediaries. Until April 2024, applicants were required to pay the application fee either in full or in instalments. The Insolvency Service is eager to issue refunds directly to those who paid the application fee but did not finish their application for any reason.

Are you owed a refund?

If you feel you are due a refund after making a payment but not submitting a debt relief order application, please contact dro.preorder@insolvency.gov.uk To request payment into your bank account or building society, please include the following details:

• Debt Relief Order application number (if known)

• Your name

• Your address

• Your telephone number

• Bank/building society Name

• Account name (as shown on bank statement)

• Bank account number (full 8 numbers)

• Bank sort code (full 6 numbers)

• Building Society roll number (if applicable)

All applications will be fully verified against system inform to prevent fraudulent claims. If you would like to request a cheque instead, please state this in your email.

If your contact details have changed since making the application, please include your previous name and address alongside your current details.

If payment was made by a charity or third party on your behalf, please provide the details of the organisation that made the payment. You can also write to the government agency, including the above information in your correspondence, at: The Insolvency Service DRO Team, C/O Met Office, Fitzroy Road, Exeter, EX1 3PB.