IB JSA Overpayment and a Civil Penalty - rate of recovery

A simple enquiry (I hope):

I have a client with a JSA O/P of £336.48 to which the DWP have added a Civil Penalty of £50.00.

The rules state:

The maximum weekly amounts that can be deducted from IS, income-based JSA, contribution-based JSA (if you would be entitled to income-based JSA at the same rate), income-related ESA, contributory ESA (if you would be entitled to income-related ESA at the same rate) and PC are:

- £29.60 if you have agreed to pay a penalty, admitted fraud or been found guilty of fraud; or

- £11.10 in any other case.

Is the penalty referred to a civil penalty, administrative penalty or both?

This refers to an “administrative” penalty which is not the same as a civil penalty ( which has been applied to your client)  - see pages 1263/1270 of latest CPAG WB&TC; H/Bk

Hi Steve,

Thanks. I’d already checked CPAG but wanted to be clear/sure that there is a distinction between the 2 types of penalty. That was how I read the information in CPAG, that is it is the Administrative Penalty that incurs the higher maximum O/P recovery amount.

If it help, the language about “agreed to pay a penalty” only makes sense in the context of adpens, where people agree to pay in order to avoid criminal proceedings. No one “agrees” to pay a civil penalty, they are just imposed.

Accepting an adpen is an acceptance of fraudulent behaviour, which is what justifies the higher rate. A civil penalty can be imposed for mere carelessness.