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Forum Home  →  Discussion  →  Housing costs  →  Thread

HB Overpaid

roecab
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Welfare benefits supervisor - Roehampton CAB

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We have a client who claimed UC, but did not tell HB

This meant that due to a delay in UC notifying HB that cl was then overpaid HB, and our local LA are arguing that this is a recoverable overpayment.

It seems that there are two issues at play (i) official error as UC did not issue a timely stop notice (ii) but did cl contribute to that error but not telling/notifying HB of the change?

Client claimed UC on 02/03/21 HB not notified until 03/04/21, by which time HB had paid until 19/04/21

The overpayment being recovered has been offset by a 2 week run on being applied and refer to the following decision in respect of the ‘not official error but a short administrative delay’

https://www.rightsnet.org.uk/welfare-rights/caselaw/item/Recovery-of-overpayment-whether-an-official-error-overpayment-can-be-split

Does anyone have any thoughts?

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

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Was there any entitlement to UC during the o/p period?  If so, the HB overpayment ought first to be dealt with as an “overlapping payment” and treated as income in the UC assessment - ideally that would have taken place before any UC was paid, but if it didn’t the HB o/p will have essentially morphed into a UC overpayment.  Only if it is not possible to deal with the overpayment in that way does it revert to its normal status as an HB overpayment.

I don’t think the official error argument stands up, there is nothing in the Regulations that allows the claimant to rely on communication between DWP and HB in a case like this.

roecab
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Welfare benefits supervisor - Roehampton CAB

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HB Anorak is that because it would be relying on a system message i.e. stop notice and not an officer of the DWP as per reg 100(3)(c)(i)?

And yes, UC was paid, with full HCE too so paid twice

Thanks for your response.

HB Anorak
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It would be because the claimant failed to disclose a change. The communication between systems is nice to have but as a matter of law the claimant has the responsibility for disclosing changes and that failure is what primarily causes the overpayment.  Doesn’t matter whether it’s human error or system error at the DWP end

Dan Manville
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HB Anorak - 26 July 2021 07:16 PM

It would be because the claimant failed to disclose a change. The communication between systems is nice to have but as a matter of law the claimant has the responsibility for disclosing changes and that failure is what primarily causes the overpayment.  Doesn’t matter whether it’s human error or system error at the DWP end

Would that stand in light of that recent NI overpayment decision I wonder?

https://www.rightsnet.org.uk/welfare-rights/caselaw/item/claimant-entitled-to-assume-decision-made-on-benefit-award-would-be-communicated-to-other-relevant-benefit-offices—house-of-lords-judgment-in-hinchy-no-longer-applicable

roecab
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Welfare benefits supervisor - Roehampton CAB

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Dan,

Interesting, I am wondering though, if because in this case it is a DWP to the LA notification case if the same principle would be held to apply i.e. DWP internal computer links etc compared with external notice to the LA?

I will raise it with our client to see if she wants to take it forward.

Thank you.