Overpayment recovery and 10p minimum entitlement

I feel like I should know this but I’m not 100% sure so hoping someone can assist.

We have client currently receiving Pension Credit of £38 a week (which is reduced due to £11.10 a week overpayment recovery) who is looking at also claiming Carer’s Allowance to establish entitlement to carer addition.

Overall effect will be to reduce PC entitlement to £10 a week, which is lower than the standard overpayment recovery rate.

I know that reg.16(7) of the SS(PAOR) Regs 1998 says that recovery cannot reduce benefit payment to less than 10p a week, so does that mean the recoverable amount is simply reduced to enable that to happen i.e. the standard rate of recovery is adjusted accordngly?

Hope that makes sense, please help, it’s Friday and my head hurts.

Bump, surely someone knows?

CPAG 2019-20 P.1244
http://www.legislation.gov.uk/uksi/2013/384/regulation/14/made Reg 14(5)
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/770083/benefit-overpayment-recovery-guide.pdf P.67 “Where this calculation results in a deduction rate greater than the amount of benefit in payment then the deduction rate is set so as to leave 10p per week benefit in payment. “

Seems pretty conclusive

Thanks for that, I thought that this must be the case, it was simply the way that reg.16(7) disapplied reg.15 that was confusing me.

The Regs reached from the link posted above are the 2013 regs, which only apply to overpayments of UC and new style JSA/ESA.

If the overpayment that is being recovered from SPC in Paul’s case is anything other than one of those three benefits, it is still the 1988 Regs that apply.  I read Reg 16(7) the same way you suggested in the opening post:  it limits the amount deducted to an amount that leaves at least 10p payable.  It isn’t saying there will be no deduction under Reg 15 at all and so an alternative method must be used, it is saying Reg 15 will only apply to the extent that 10p is left.