Have a client who asked for the amount deducted (to recover O/P of IB) from their IB to be reduced due to hardship.
DWP responded by doubling the deduction.
DWP told client that they were not interested in the clients Income/expenditure - the DWP used standard figures and because client has DLA HRM & MRC and Child Tax credits (all counted in these "standard figures") that they have a surplus of over £400 per month.
This is absurd considering the client misses IS by just 85p.

I can only find guidance / regs for O/P amounts and amounts deducted for loans - nothing on rate of O/P recovery.

Can anyone point me to the details of these standard figures? Do they take account of DLA? Is there any legislaton / guidance for this?

I am in the middle of a similar dispute. We sent them a financial statement showing my client's expenditure exceeded the income. They responded by increasing the deductions. We phoned them and they sent the client their own income and expenditure sheet (it's not very good). However we transferred the information onto their form and sent it back. We are waiting for a reply.

I complained about a similar issue and also made a FOI request for the guidance (case resolved on this point by them suspending deductions as client had appealed) .

Note sure where the guidance is, but it's headed Appendix 1!

The FOI disclosure revealed that they have fixed instalment rates deduction rates based on the amount of the OP and virtually no regard is given to individual financial circumstances, other than advice to "negotiate" about this.

It is quite appalling that a government department has such poor debt collection practices.

In response to my complaint, they said that they were reviewing their procedures and had involved Citizens Advice and Money Advice Trust. Does anyone know anything about this?

It might be worth making formal complaints about the practices in these cases and so keep up the pressure on them to alter their practices so that they come into the 21st century.

If you privately email me your fax number, I will fax the guidance to you.

Thanks for your answers - (I have e-mailed you privately Neil)

One other thing - I noticed that the DWP letter did not offer any appeal rights.

Is O/P recovery a benefit decision and does it carry a right of appeal?

The decisions about whether or not to recover an OP and the rate of recovery are both non-appealable decisions. However, you can use the corporate DWP Complaints Procedure to challenge these decisions (don't let them sit on it!) and also judicial review may be an option.

Neil

"In response to my complaint, they said that they were reviewing their procedures and had involved Citizens Advice and Money Advice Trust. Does anyone know anything about this?"

Not certain but what I do know from my time working at a CAB many years ago (and doing some debt work) is that CAB money advisers usually work to the stards that courts operate at in terms of how to draw up financial statements, certain expediture allowances (although the courts can often be more generous here), etc. Thus it might be this sort of area where they are seeking CAB advice

Regards
Paul

"stards" (line 4). Read, standards.