Hi guys.
My client has appealed CTB overpayment decision and she was successful (official error). That was in summer 2007. Few days ago she received an overpayment decision letter stating that as she was no longer entitled to CTB, she needs to repay part of DHP which was paid towards CTB. It appears that this part of DHP was paid for 16 weeks after the LA decided that client is no longer entitled to CTB.

The original DHP award letter for the relevant period does not explain that the payments under DHP were made towards HB or CTB- there is no information from which the client could have been reasonable expected to know what the payments are for and she presumed that they are to help with rent. The overpayment of CTB itself was deemed non-recoverable following client's appeal.

So, the same office continues to make DHP for CTB for 16 weeks after they decide that no entitlement to CTB. Client has no idea that they are making these payments. Official error?

Well the fact that DHP continued looks like official error. The question of recoverability would normally turn around whether the claimant could reasonably have been expected to know that they were being overpaid. From the information you have given it would appear not - certainly if they were receiving HB as well and there had been no explanation of what the DHP was for.

The only potential problem is that DHP's are not HB or CTB - and I don't know that the same principles apply as they would to these benefits. Justice and consistency would seem to require that DHP OP's ought to be treated in the same way but I am not sure if the rules say that.

Although the facts are different, see below.

http://www.rightsnet.org.uk/dc/dcboard.php?az=show_topic&forum=102&topic_id=2703&mode=full

But surely the LA should have issued a revised CT notice, which should have shown part of the CT liability being offset by the DHP payment?

If they did this, then the client could (I assume) reasonably have been expected to know he/she was getting the DHP for CT. If they did not do it, then how on earth do they keep their CT accounts correct?

I *think* this can more or less be regarded as the definitive answer.

Regulation 8 of the The Discretionary Financial Assistance Regulations 2001 (SI 2001/1167) applies.

Overpaid DHPs can only be recovered in two situations:

1) where a payment of DHP has been made incorrectly as a result of any person misrepresenting or failing to disclose a material fact (whether or not fraudulently); OR

2) DHP has been made incorrectly as a result of an error made when the application for payment was determined.


Hope this helps - at least to the extent of being able to work out whether or not your client has to repay the DHP.

Thank you all. In light of the posts and the regs quoted above, it seems that the client will have to repay as there is no mention of the reasonable expectation that client was able to know that the error was made. Or she has failed to disclose that she is not entitled to CTB anymore? That's how I am reading it. Very strange.

If I were you, I would be arguing that;
a) No one misrepresented a material fact.(I assume that was the case as the CTB overpayment was Official Error)
b) At the time the decision to award a DHP was made, there was no error as your client was in receipt of CTB at that time.

therefore the LA cannot recover the overpayment.

I doubt the LA would have the temerity to suggest that your client was responsible for informing the LAs that the same LA had taken away her entitlement to CTB.

Yes, the CTB o/payment was an official error plus at the time DHP award was made, she was still entitled to CTB. Marvellous.