I am a CAB debt adviser. My client is dyslexic single parent who fraudulently claimed IS/HB at instigation of ex live-in partner (father of her youngest child) over a 7 year period. (He had debts,she was under other family pressures and didn't feel strong enough to stand up to him). Lots of mitigating circumstances in my view, e.g. client ex-care leaver with low self-esteem, first child born when she was 15 and now in custody of paternal grandmother in Cornwall, etc. Fraudulent claims found out when relationship with ex broke up and his mother (who had known all along) reported to authorities. Clt has approx £45K combined IS/HB debt plus council tax arrears from recovered CTB. She was prosecuted for HB but not IS - completed Community Rehab order. Authorities apparently say no evidence to prosecute ex. Clt literally cannot make ends meet what with o/p deductions, especially HB. Lowest deduction that was accepted was £5.40 / wk and that required 2 appeal letters and MP intervention. Deductions now back to £10.80 / wk. Clt has rent arrears as a result and also at least one Liability Order for c/tax arrears. Her long-term employment prospects aren't brilliant. Are there any precedents for DWP/local authorities writing off such debts or at least making time-limited recovery? Clt cannot go bankrupt because fraudulent debts remain recoverable even after bankruptcy discharged.

I am by no means an expert in this area, but in relation to the LA side of things I would say it would depend! Each LA has differing policies and delegated powers for dealing with matters like this. I think it would be best for you to seek advice from the LA dealing with it, as they are best placed to advise you on precedents previously set by their LA.

I have seen cases where claimants have applied to have fraudulently obtained debts written off, with no success. The most extreme of which was a 72 year old woman with approx £18k overpayment. On the repayment figures agreed, she would have to live to the age of 141 before it is repaid in full.

don't know if this is any help - the SoS has the discretion _not_ to recover overpayments, even when repayment has been required. Sec 71 of the SS Admin Act says "the SoS shall be entitled to recover..."
This means that he can be asked to exercise his discretion not to seek recovery of a sum he is entitled to recover, and if he doesn't exercise his discretion reasonably/refuses to exercise it where it's reasonable to do so, his decision is judicially reviewable. i believe there are quite a few precedents around the exercise of discretion generally, but i'm not an expert in this area either so i can't quote any... i don't know any specific to benefit o/pts : )

realistically, you would have to put together a very compelling case to convince the SoS's rep in the local office why he shouldn't seek recovery, and a successful prosecution for fraud is a considerable obstacle, but obviously, you know the details of your client's case, and it may be possible to strengthen it with experts' reports.

i'm less sure, but i think the same principle applies to LA overpayments.

jj

Not wanting to repeat other correspondants but when it comes to HB overpayments, the legislation describes them as "recoverable" giving the discretion to LAs whether or not to pursue recovery.

From personal experience, an authority is less likely to write off a "fraudulent overpayment" than a less serious "claimant error", however the discretion is still there.

I'm assuming that your client was "found guilty of fraud" or has admitted to the offence and been cautioned. (HB regs 102)