I have a lady who claims IS, DLA HRM,MRC, this gives her the disability premium and the severe disability premium.
Her sister who lived in Spain was diagnosed as terminally ill and this lady went abroad from 18/10/06 to 12/12/06. She now has an overpayment of £1125.20. What can I say in her defense?

What benefit concerns the overpayment?

Just realized from the heading of your post how stupid that question is. Lets try again. What is the period of the overpayment?

I'm working on the assumption that this individual is not claiming as part of a couple...

If so, she's clearly been clobbered for the whole of the period that she has been away - personal allowance + DP + SDP for 8 weeks at last year's rates = £1029.60. I can't see how she can come within one of the groups who can continue to receive IS for up to 8 weeks abroad on temporary absence (reg 4(3) IS regs) but she might well come within the provisions of reg 4(2) and thus be entitled to payment for the first 4 weeks of absence.

Just what I was thinking.

Thanks for you early replies. I have looked at regulation 4, I want to build up a case for special circumstances because her sister was terminally ill. She has since died. Anyone any tips?

The DWP have the discretion not to recover all or part of the overpayment - so pull on the heart strings. However, they may not agree to exercise discretion, so it's best to reduce the amount they are actually able to recover via the appeal route. Remember, the tribunal cannot exercise discretion or order the DWP to exercise theirs - they can only apply the law. I'd go for the twin-track approach - an appeal and a request that they don't recover.