It is going to matter on what basis they are claiming recoverability - misrepresentation on the IS10 or failure to disclose the daughter's CA claim. Appeal, get the papers, and see - the DMC won't know.
I can see a respectable argument against misrepresentation - that there was a misrepresentation but the overpayment was not made in consequence of it.
On failure to disclose I doubt whether CA can be held to account for failing to tell IS about a CA claim by a third party. In fact the CA claim pack doesn't ask anything about the disabled person's benefits (apart from DLA) so they couldn't have done so. On the other hand one of the parents would normally have to have counter-signed the daughter's CA claim, so they would have known about it.
However worth checking what notices parents received about their IS and what changes they were told to notify - if JCP can't show an explicit instruction to disclose any CA claim by a third party, under Reg.32(1A)C+P Regs, then, under 32(1B), it becomes a question whether parents could reasonably be expected to know that payment of CA to the daughter would affect their IS - which looks well arguable.
Richard Atkinson
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