Disabled Woman Left in Debt After DWP Benefit Cut Error
A disabled woman from Stockport has been plunged into financial crisis and significant debt due to what she describes as "breath-taking incompetence" from the Department for Work and Pensions. Sabena Khan, 47, who suffers from cerebral palsy and rheumatoid arthritis and requires round-the-clock carer support, saw her Universal Credit payments terminated last year after a DWP decision that has now been reversed following media intervention.
The Costly Administrative Mistake
Sabena Khan, who relies on carers for day and night support due to her conditions, had been receiving Universal Credit from the DWP. However, in March 2025, the benefits department made a critical error by ruling that money from Stockport Council sent to Sabena specifically to pay for her carers constituted personal savings rather than essential welfare payments.
This incorrect classification meant the DWP calculated Sabena's capital as exceeding the £16,000 threshold for Universal Credit eligibility, leading to the immediate termination of her £200 monthly payments. "I knew after speaking to you that I wasn't going mad, and actually I was right," Sabena told reporters. "It didn't need to be this long, it's just frustrating really, but at least I've won the fight so far."
Financial and Emotional Fallout
The DWP's decision had severe consequences for Sabena's financial stability and mental health. "I'm in debt, I've not been able to go shopping, I'm still going to food banks, but now I have to pay for the food," she explained. "I'm in debt because I'm living in my overdraft, and the benefit comes in and that covers the overdraft but then I've got very little to live on, so it's not good."
Sabena described accumulating nearly a thousand pounds in debt despite extreme budgeting measures and expressed concern about her ongoing situation. "I'm just wondering how many more months I have to live like this," she said. "They've really let me down here, my mental health has just gone out the window, but I'm doing my best not to get too down about it all."
Systemic Issues and Resolution
The prolonged case highlighted what Sabena identified as systemic problems within the benefits system. "The main thing is they don't really know what they're doing, they've got no idea, and individuals are suffering because of that," she stated. "The other problem is I have different people handling my case and each time we have to start all over again from the beginning. I got fed up with explaining it again and again, it just felt like it was falling on deaf ears."
After months of struggle and intervention from media outlets including the Manchester Evening News, the DWP finally reversed its decision. The department acknowledged that "payments from a local authority for welfare purposes are disregarded as capital for Universal Credit purposes" and reinstated Sabena's payments.
A DWP spokesperson stated: "We sincerely apologise for any distress caused and have resolved the issue with Ms Khan. Where errors do occur, we are committed to putting them right as quickly as possible."
Sabena emphasized that she spoke out to give others in similar situations a voice, noting that many people remain "still here and stuck" in bureaucratic limbo while struggling with disability and financial insecurity.
