Pension Credit Overpayment and recovery

A very interesting case has come our way in relation to a pension credit overpayment and its recovery. While assisting with this individuals benefits, a colleague who’s role is debt advice and money related matters felt we could conduct a bankruptcy to reduce this elderly persons outgoings. This sums were queried with DWP who confirmed amounts and no action was being taken, thus overpayment were added to the bankruptcy.

However without labouring the point it seems the DWP are now stating they treated this case as a fraud and as such the sum outstanding can not be added into any debt resolution. Having regard to the fact there was no charge, no Prosecution, no Civil Penalty nor an administration penalty, or even a caution I am at a genuine loss to accept this contention from them.

Not withstanding the fact an element of intent has to be proven in a fraud accusation, I can’t recall when the powers of the DWP allowed them not only to breach Article 6 HRA but also become their own Judge , Jury and executioner.

We are fully aware of the policy manual in relation to these matters, but it is not identifiable what gives the DWP this totalitarian approach.  In theory this approach would mean that all they have to do is say the magic fraud words and all money can be recovered.

Any words of wisdom would be accepted