ESA arrears reducing outstanding overpayment

Hi All,

Looking for some thoughts on this one really…..

I recently represented a claimant at an ESA tribunal and it was decided that she should be put in the WRAG.  There were therefore arrears of benefit due for the period the appeal took to be heard.  These arrears exceeded £500.  I’ve been chasing up payment of the arrears for the claimant and have just been told that claimant has a pre-existing IB overpayment of thousands of pounds which this money has been used to reduce.

This was the first I’d heard of the overpayment but having spoken to the claimant she accepts that it exists.  She states she’s been making regular payments to repay the overpayment by way of deductions from her ongoing ESA - including during the period she received the reduced amount.

Is there any argument (apart from poor debt management practice) that anyone thinks I can use to reduce the amount of the arrears which can be used to reduce the overpayment in these circumstances?  In particular does anyone think it’s worth arguing that by using all of this money in this way the DWP have exceeded the maximum amount which should be taken from a claimant’s benefit on a weekly basis towards recovery of an overpayment?

Or am I on a hiding to nothing throwing the claimant to the mercy of the discretion of the DWP to recover?

I’m aware of the moral argument of the claimant having the overpayment in the first place but I’d like to see if I can do anything to get her some of the arrears as if her ESA had been paid over the period instead of her having to appeal she would have had the money to pay her bills at that time and the DWP would have received towards the overpayment the amount they’d agreed previously with her.

Any thoughts welcome.

Mairi

There have been some discussions on similar issues.  Here’s one:

http://www.rightsnet.org.uk/forums/viewthread/3033/

The last time I tried to do something about this, the response from DM was hardline.  They issued a ‘goodwill’ payment of £100 (despite quite desperate circumstances) and refused to go further unless the appellant could demonstrate where this money had gone, and why she needed more.  Still, better than no money at all, I suppose.

Thanks ROBBO.  That’s what I expected really - just a bit thrown that I’ve been actively pursuing these arrears for the last 4 weeks only to find that I needn’t have bothered as she’s unlikely to get the benefit of them anyway - except the debt reduction of course (it reduces the previous period expected for recovery by about 18 months).

Mairi

I now, as a matter of course, ask all ESA claimants who are appealing
if they have any overpayments, as if they win the arrears may be used to
clear debts. Same if their reduced payments on Contributions based entitle them to extra help
with HB while appealing.
A client of mine got an extra £15 per week HB while appealing, won, got arrears and then had to repay about £700 in overpaid HB. She spent her £1200 arrears in 3 weeks, and was unable to repay her HB overpayment.

In the case I referred to on the previous thread Debt Management did agree to release all the ESA arrears due to client on hardship grounds so it is possible. I included supporting evidence from client’s Housing Support Worker, debt worker, etc, with the request.

Thanks for the suggestions.  The overpayment is due to take until 2063 to be recovered at the current payment rate so we don’t really have a moral leg to stand on and I’m not convinced there’s enough of a hardship argument to have the decision changed anyway but will discuss giving it a go with the claimant…...