Local Authority misinterpreting FTT decision and continuing to recover HB/CTB overpayment

The FTT upheld our client’s appeal against a recoverable overpayment for the period 15/11/99 to 31/3/09 on the grounds that the LA had not established the amount of the overpayment and that, further,  from 7/3/01 the overpayment was wholly due to an official error.  The LA asked for the decision to be corrected to read that the official error occured from 27/7/01.  The FTT corrected the decision to amend the date from when the overpayment was due to official error.  No other change was made to the decision that the overpayment in its entirety was not recoverable from the appellant.  The LA has concluded that the period from 15/11/99 to 27/7/01 is recoverable and has initiated recovery proceedings.  We are currently arguing that they are acting against the decision of the FTT.  Does this need to be referred to the FTT for a decision?  If so, what is the procedure?  I can’t see any reference to this in the TCEA.

Its my understanding that a Tribunal decision is not legally inforcable (least thats what it says on their letter regarding decisions).  Im assuming that the Local Authority haven’t gone to the UT on a point of law.

I note that most agencies have agrements with the TS regarding how the appeals proceeds and what there duites are during and after the appeal.  The PS certainly do i;ve seen it (its on the TS website along with others) and I would suspect that Local Authorites will have something similar.

It may be worth having a word with the Local TS to see if they can put pressure on the Local Authority and remind then that they should be implementing the decision correctly.  The other alternative is a complaint to the Local Authority/ombudsmans, etc. 

I not an expert in debt but I would have thought that they would not have a resoanble prospect of success in the County Court as a court has already decided that there is not a recoverable overpayment.  You may have gorunds to have any action stuck out on this basis.  You may want to check this with someone who deals with this type of action.

Difficult to be fully certain on the information given.  When the tribunal said they had not established the amount of the overpayment was this due to incorrect notification?

If that was the case it is open to the LA to issue a new decision notice that complies with statute and then look to recover the recoverable part of the overpayment. The corrected decision notice would, however, carry with it the right of appeal.

The position would be similar if the reason for the decision was that the LA had not demonstrated that they had actually undertaken a supercession or revision. Again they could the correctly undertake such and notify correctly, again giving a new right of appeal.

Hi Lorna,

If your interpretation of the o/p decision of the Tribunal is correct then the current decision is that no amount is recoverable from claimant- a Tribunal decision replaces that of the LA. That is completely clear from cases such as R(IB)2/04.

If the LA are in fact recovering by way of direct deduction then they have no legal authority to do this. The full amount of HB awarded to the claimant is payable to the claimant.

I think that the remedy for the claimant would be to sue the LA for the amounts being withheld in the County Court- have a look at CPAG’s HB and CTB Legislation 22nd ed 2009/2010 at page 452 for the cases- see in particular Jones v Waveney DC [1999] 33 HLR 3, CA

Martin.