Higher rate of recovery of overpayment where fraud suspected

I have two cases where clients have been interviewed under caution and following this a decision has been made that they have been overpaid.  Appeal against the overpayment decision pending in one case, unsuccessful in another.  The Local Authority seems to think that if an appeal against the overpayment is unsuccessful, they can recover at the higher rate, regardless of whether there is a criminal prosecution at all or,if there is, regardless of the verdict.  The sentence they use is ” The LA generally recovers Counter Fraud payments at a higher rate”.  My reading of Regulation 102 is that, assuming the client did not admit to fraud, or agree to a higher rate, it could only be recovered at this rate if they were actually found guilty in a criminal court.  Does anyone else have a view on this?  Thanks Ruth

The Regulation has three alternative requirements:

- a conviction
- admission of guilt after caution
- acceptance of an ad pen

Without one of those conditions being satisfied the higher recovery rate does not apply.

It cannot be appealed because it’s one of the matters excluded by the Schedule to HB&CTB; (D&A) Regs, so the complaint route is the only realistic option.

Thanks Anorak, that is exactly my reading of it.  I am hopeful that I won’t have to complain - that it’s been a careless reading of the regulations and just pointing this out will be enough.  We shall see.  Ruth