DHPs and Overpayments

It’s the absence of legislation that is relevant.  There is simply no power for a LA to unilaterally use a DHP award to reduce an overpayment.  In law, a DHP isn’t HB or CTB so there is no question of any reliance on deductions by way of on going benefit.

In short, if it happens again, a complaint / Councillors etc.  In the first instance, the complaint to the LA should ask for the legal basis on such a process with a warning shot that if the LA doesn’t make good the payment that consideration will be given to seeking restitution in the County Court and/or a complaint will be made to the LGO for good measure

Is this the same LA that is currently insisting on claims by interview?  If so, it seems something is distinctly “wrong” with those in charge of that LA’s benefits administration.

Thanks Kevin.  I’m still finding my feet a little, there’s a lot of areas where I’m missing the handbooks I had in a previous life and while I *know* something, I can’t find why & where.

It is the same authority that’s insisting on interviews, but the offset was a few years ago, and I know they’ve had at least one change of benefits manager in recent memory, so I don’t know if they’re all that related.  I have a feeling the DHP was possibly an isolated assessor using “initiative”.

It is arguable that you could sue in the County Court for restitution (see Waveney DC v Jones CA 1 December 1999)

The principle that unless the Council first obtains a court order, it cannot garnish other payments owed in order to recover overpayments was established in R v Haringey LBC ex p Azad Ayub QBD 13 April 1992.

The Limitation Act 1980 provides for a time limit of 6 years for taking court action though.

I have heard of cases (Not at my LA) where a claimant is having an HB overpayment recovered at a rate lower than the weekly maximum because they have submitted an income and expenditure form showing they have a shortfall.

The debtor then applies for, and receives, a DHP, increasing their income which results in a higher level of deduction being taken from HB.

Although it is all done correctly within the law it would appear to the claimant that the DHP is being used to recover the overpayment, especially where HB and DHP are paid on the same cheque or in the same BACS payments.

PS – I am not saying I agree with that practice, just that I am aware it does happen and would appear to be lawful.