DLA WITHDRAWN AND ADMINISTRATIVE PENALTY

I have a client who had DLA withdrawn following a fraud investigation. She repaid the amount of benefit in full that they said had been overpaid to her. She has now received a letter asking her to attend an interview so that the administrative penalty can be explained to her. It seems to be an amount paid so that court proceedings are not taken against her. Has anyone any experience of this please? The amount is £347.91 and the amount client repaid in overpaid benefit was £1159.70.Any advice would be appreciated.Thanks

Thanks Tony , what a great explanation. Just one point if you could clarify please. You say as the adpen is less than the minimum of £350 ( they have said £347.91) then it doesn’t apply in this case. What do you mean by that? They have said it is an administrative penalty so how does it not apply.? Thanks .  The client has said she doesn’t want to go ahead with an appeal.

CPAG, p 1303, says “the amount of the penalty is 50 per cent of the overpayment (or £350 if you were not actually overpaid)....”

This suggests that, as you say, the penalty is just bumped up to the minimum.

Could it be that they have correctly applied the amount that was applicable at the time of the alleged fraud?

Thanks everyone , much appreciated.