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Forum Home  →  Discussion  →  Work capability issues and ESA  →  Thread

HMRC real time datamatching

CHC
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Welfare rights team - St Mungo's Broadway

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Total Posts: 169

Joined: 22 June 2010

Client’ s Housing Benefit was reassessed in April following a HMRC real time datamatching exercise. He is in receipt of cbESA but had been working part time. His income/hours in February - April went over the PW limit.
While his Housing Benefit was reassessed his ESA was not, it’s not even clear if ESA were aware by client that he was working, he doesn’t think be completed a PW1 form and has not provided any correspondence to show they are aware.
As the HB decision letter states that the datamatching exercise was completed on behalf of the DWP, the client does not feel he needs to disclose separately to ESA.
Im not clear on the processes of sharing of HMRC real time data with LAs is it possible that HB requested this data rather than DWP for his ESA claim?

HB Anorak
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Benefits consultant/trainer - hbanorak.co.uk, East London

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The HB data matching isn’t done on behalf of the DWP, it is facilitated by the DWP on behalf of the local authority: DWP harvests the data off the PAYE system, the data is (are?) then shared with the Council.  The Council doesn’t have a direct data matching link into PAYE.  The process was originally led by DWP - their system would run bulk data matching using the regular HB data extracts that local authorities provide, and the LA would only hear anything if a mismatch was identified.  But these days councils initiate the matching on a case-by-case basis - they use it routinely for proactive earnings verification.

Now I would assume that, having harvested PAYE data, DWP would also use it for their own purposes.  But I don’t think it’s advisable for anyone to deliberately not disclose info on the basis that the DWP might pick it up through data matching.  In terms of any possible overpayment of old-style ESA the principal cause is still going to be failure to disclose.

If it’s new-style ESA, it’s recoverable anyway.

CHC
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Welfare rights team - St Mungo's Broadway

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Total Posts: 169

Joined: 22 June 2010

Thank you, that’s helpful.

I had advised him that he must declare it separately to ESA. 

I am hoping they will consider a closed period for overpayment but concerned he hasn’t ever declared the work so not considered permitted work.