× Search rightsnet
Search options

Where

Benefit

Jurisdiction

Jurisdiction

From

to

Forum Home  →  Discussion  →  Housing costs  →  Thread

recovery of overpayment before the appeal is heard

tokky
forum member

toxteth CAB

Send message

Total Posts: 12

Joined: 23 June 2010

I think this has been discussed a few times before but I haven’t come across this for a while: how do you prevent the DWP and local authority from recovering an overpayment of benefit before the appeal has been heard, and get back any deductions they made prematurely?
My client found work after being unemployed three years ago. He claimed extended HB. Three months after he started work his local authority wrote to him to say they’d overpaid him HB by one week. There was a dispute about the dates, as well as about whether the overpayment was recoverable. The dates the local authority put on their letter suggested that, rather than overpaying him by one week, they still owed him three weeks extended housing benefit. He refused to pay the alleged one week overpayment but didn’t appeal. A few months after that he moved house to be nearer his job (to south Liverpool, which is my area). He was made redundant again at the start of this year. When he went on to income-based JSA after six months, he got a letter from the DWP Debt department in MItcheldean saying that his “local authority” (his previous one) had asked them to collect an overpayment of housing benefit from him. This was the disputed one week’s overpayment. He appealed this time, but the debt centre started taking deductions from his JSA three weeks after sending the overpayment recovery letter, that is, before the deadline for him to appeal was up. They continued the deductions despite demands to stop, and have still not acknowledged the appeal. However, he did get a letter from the original local authority (Rochdale) complaining that the DWP debt centre had told them that he had appealed, and insisting that their original decison was right - so it seems the debt centre did get his appeal. My reply to Rochdale was that, in pursuing this minor debt nearly three years on, they had opened the client’s right to appeal again and he was exercising the right; and we would like to see appeal papers in due course.

However, the client really wants to know how he can get his deducted benefits paid back. I haven’t come aqcross the DWP making premature overpayment deductions for some time and the only way I know of tackling it is by threatening judicial review. That stopped the DWP making ongoing deductions, but in this case they have already taken the entire amount of the disputed overpayment (it was only £80). All I’m finding in the sources I’ve looked at is that if a claimant agrees to repay an overpayment before their appeal is heard, there is no method of claiming the money back if they win the appeal. In this case, the cliamant didn’t ‘agree’ to repay, but I can’t find anything else relevant to the circumstances.

Stainsby
forum member

Welfare rights adviser - Plumstead Community Law Centre

Send message

Total Posts: 616

Joined: 17 June 2010

You could sue for restitution in the Count Court and cite Waveney DC v Jones CA 1st December 1999

[ Edited: 17 Oct 2011 at 02:04 pm by Stainsby ]

File Attachments

Kevin D
forum member

Independent HB/CTB administrator, consultant & trainer (Essex)

Send message

Total Posts: 474

Joined: 16 June 2010

Also see this earlier thread - it may be potentially useful in support of any argument to obtain restitution:

http://www.rightsnet.org.uk/forums/viewthread/83

splurge
forum member

Welfare officer - Peabody, London

Send message

Total Posts: 101

Joined: 16 June 2010

It is considered good practice not to pursue overpayment reccovery until an appeal is heard - after all it is an administerative cost to have to sort out repayments if the Local Authority looses. There may be something stronger in the Housing Benefit reguations, but the guides all state this and when i have put it into writting - or indeed used a stage one complaint against a Local Authority - it has done the trick.

J Membery
forum member

Revenues and Benefits Manager, Aylesbury Vale DC

Send message

Total Posts: 134

Joined: 16 June 2010

I think some clarification is needed here.

You say your client was overpaid three years ago and didn’t appeal against the decision at the time. Is that correct?

If so I think your argument that the fact that the Council is now actively pursuing recovery of that overpayment grants a new right of appeal has no real basis in law.

Are you arguing some defect in the original decision notice?

tokky
forum member

toxteth CAB

Send message

Total Posts: 12

Joined: 23 June 2010

The DWP’s debt collection section in Mitcheldean issued a decision notice that they were going to recover an overpayment “of benefit” from the client - without saying what benefit had been overpaid, the client had to phone them to find that out - and the notice says that it is an appealable decision. In the same week he got a second letter from a DWP debt collection centre in a different part of the country saying that his “local authority” (no information as to which one) had asked them to recover an overpayment of housing benefit from him. The second letter has the same date as the first, and arrived only two days after it, so it doesn’t look as though it is an amended decision following his phone call about the first letter. This too says it is an appealable decision. I have sent two separate appeals for each decision. The appeal is against the decision of the DWP,  but the previous local authority is involved since they instigated the overpayment recovery decision. They should probably not have written to the client direct but passed on the information to the DWP.  I am expecting the DWP to produce appeal papers based on the information they get from the local authority about the circumstances of the overpayment.
    I find from past experience that overpayments involve two decisions: one, that an overpayment has occurred, and two, sometime later, a decision that it is recoverable. Many clients ignore the first decision and only seek help when they get the second.
    Methinks the local authority would have been better served letting this lie. It has probably cost them more than £80 already to pursue it.

[ Edited: 23 Oct 2011 at 12:30 pm by tokky ]