advance payment / overpayment recovery rate 15% or 40%

Client is having a (natural migration) advance payment (AP) and a CTC overpayment recovered at a total of 40% of personal allowance. Client does not have any other deductions (third party payts etc) apart form housing costs under an APA.

Following CPAG’s item on AP recovery http://www.cpag.org.uk/stba/uc-advances we conclude that Social Security (Overpayments & Recovery) Regs 2013 govern the recovery of advance payments because they are ‘payments on account’ under SSAA s71ZG as defined by Reg 3 (as are overpayments) and therefore Reg 11(2)(c) applies in our clients case which limits recovery to 15% of personal allowance. It is then for DWP to determine what proportion of that 15% is for each item.

Maximum total deductions at 40% is allowed where there are deductions for third party payments etc. under UC etc (Claims & Payments) Regs 2013, Schedule 6, para 4. However this does not serve to increase the 15% limit where only payments on account and/or overpayments are concerned. If our client did have 3rd party deductions DWP could deduct 15%(for AP & o/p) + 25%(3rd party) + housing costs. 

In response DWP state on clients journal

‘We are deducting [for the AP] £x over a six month period. The legislation is not that it is to be recovered over 12 months, it is that it is to be recovered over a maximum of twelve months.’ [Although in this case the UC Regional Group Director has stated to clients MP that recovery is taking place over 12 months!].

DWP also state:

‘If you are struggling to repay the advance you will need to contact our Debt Management Dept’.

Firstly would others agree with our analysis of the relationship between OP regs and C&P regs or have we lost the plot? Does this mean there is a conflict between DWP guidance on recovery period for an AP and the regs?

Secondly what success in practice have others had in arguing a reduced rate of recovery? Were you able to do this via the journal or did you have to contact Debt Management?

Clients case has been taken up / challenged through all the usual routes!

I had very easy agreement to delay repayment of the advance for three months to allow other overpayments to be dealt with first. Not DMT but the helpline. Phone answered within 10 mins too. Client had 12 mths advance repayment, a HB o/payment and rent arrears at 20% of standard amount. He was receiving £190pm.

Agreement that this was perhaps not enough.