Potential overpayment of ESA/HB??

Hi all, clutching here!!!
Working Age customer, receiving ESAir (SG). Awarded Enh PIP, SDP applied.
However, he also started receiving his Army pension in September 23.
21/9/23 – lump sum of £11½K and first payment £1100, took his capital to £16,211
Credit card debt paid
28/9/23 – capital went to £14,095. Been below £16k since.
He did not tell DWP about his pension and they have sent him a letter after a HMRC RTI scan.
We know the ongoing monthly pension will stay below ESA applicable amount, its more whether the capital exceeding the threshold for 1 week will cause a cancellation of legacy benefits, and subsequent Ovp.
He has already sent bank statements to DWP.
Is there any chance that the DWP will disregard the week of £16k capital due to pay debts? – NB £4½k had been put in to his account in July by his daughter for “Medical Aids”

Any thoughts greatly appreciated

Just a thought - I read in CPAG that the first payment of the army pension becomes capital after the first month it was paid - My interpretation is that;
Initial balance £3602.86
21/9/23 - £1168.22 1st pens payment (ongoing pension £314.37 pmth)
21/9/23 - £ 11525.79 lump sum
New balance = £16211.42

However, 1st payment £1168.22 would not be counted as capital until 21/10/23.
Assessable balance would actually be £15043.20????????

Really sorry for making it longwinded!

A couple of things.

First, any overpayment can be dealt with by way of a closed period supersession. Identifying a week in the past in which he was not entitled to benefit would not result in the end of his awards.

Second, I think your ‘first thought’ is correct. “Capital” is not the same as “bank balance”. The regular payments that he is receiving are taken into account (or disregarded) as income in relation to the periods in which they are paid and are not therefore taken into account as capital as that would be double-counting.

I think that you are probably correct as to the analysis of his pension, but even if you are not he is receiving other regular payments of income - the irESA and PIP - which would not properly be included in the assessment of his capital for a time after receipt. If it is just that his bank account went £200 over the limit at some point, that figure almost certainly includes some of his recent income which shouldn’t also be taken into account as capital.

thanks Elliot.
I did find R(IS) 3/93, DMG 52051 after posting

That was reassuring but wanted a second opinion.
Hopefully the DWP know their own rules!!
Many thanks again