Hi all

Has anyone any experience of their LA increasing the standard deduction for an o/p to £12.80 instead of £9.75?

Thanks

Is this recovery of an overpayment because of fraud (allegedly)?

Nope no fraud involved, they just seem to have increased their standard amount.

£12.80 is the standard deduction where overpayments are caused by fraud.

A recent (ish) circular clarified when an overpayment is considered to have been caused by fraud or not, perhaps this is a response to that circular.

Copied from a similar thread...


A27/2008;
Recovery of overpayments from ongoing HB
52 The standard maximum rate of recovery from continuing benefit is increasing from £9.15 to £9.75 from 1 April 2009. Similarly, the maximum rate of recovery from continuing benefit, when the overpayment has arisen as a result of fraud as defined in Reg 102(3) of HB Regulations 2006 and Reg 83(3) of HB (SPC) Regulations 2006 has increased from £12.00 to £12.80.
53 As well as the above rates of recovery, an LA can increase deductions by half (50%) of certain disregards, if applicable for
• earnings
• regular charitable income or voluntary payments
• War Disablement Pension or War Widows Pension
54 LAs must not recover more than these prescribed amounts from ongoing HB. LAs should have regard to any special health or financial circumstances of the claimant before deciding the level of deduction, or when to commence the deductions, to avoid causing undue hardship to the claimant or their dependants. See HB/CTB Overpayments Guide, Recovery of Overpayments, paras 4.430-4.432.

which is why I mentioned the fraud part, the La may be being naughty here...