Overpayment query.

Just a quickie regarding benefit over-payment procedures. I have little experience of such things so apologies if the answer should be staring me in the face.

I have a client who was refused ESA, appealed and won 9 months later. I informed her that she would get a backdate of her WRAG or Support component if her appeal was allowed.

She has now informed me that she had a DWP overpayment going back 9 years, and she has had an agreement to repay at 7 quid a fortnight until debt paid off, which she has been doing for years.

Anyway - the DWP have now decided they are keeping the ESA component backdate of 900 quid and are taking it off the amount owed from the original overpayment.

Are they allowed to do this?

Any help would be appreciated.

We’re seeing this quite a lot.

As far as can tell, they have every right to withhold arrears payments (legally, if not morally) but there is some internal guidance - “JCP Guidance/Overpayments referral forms and guidance” Chapter 12, paragraph 26.  I have not seen it, but I understand it makes clear a refund can be issued in cases of hardship.

It’s by no means easy to convince Debt Management it exists, but in a couple of cases I’ve pursued, a refund has (finallly) been issued.

I’ve just encountered the same thing. The client has other debts including substantial rent/CT arrears and was intending to use the arrears of benefit (going back to late 2009) to clear some of her priority debts. The whole lot has been offset against an historic IS overpayment which she was repaying from ongoing ESA. Does anyone have a link to the guidance? I can’t find it.

Thanks!!

This document can be found somewhere on rightsnet (via google)!

Recovery from Arrears Of Benefit - Schedule 2K - Underpayments of benefit identified on DM overpayment case
5.47 Current legislation allows the SofS to recover any recoverable overpayment for a prescribed benefit from any arrears of that or any other prescribed benefit.
Exceptions
5.48 Do not recover from arrears when they are for;
a) the full weekly benefit entitlement for the start of a claim, where the award is delayed for administrative purposes (e.g. benefit claimed, award delayed pending verification of details, award made, arrears paid up to date usually for the first few weeks of the award);
b) arrears that have accrued as a result of benefit being suspended.
Notification to the debtor
5.49 When arrears have been recovered and deducted from the total amount of the overpayment, the customer must be notified.
5.50 Where the debtor replies stating that the withholding of the arrears would cause financial hardship, consider the case on the facts presented. If appropriate, arrange to have the debt balance adjusted and a refund issued to the customer. It should be noted that there is no right of appeal against a lawful decision not to pay arrears that have been/are to be recovered.

This was the link to the whole long and sordid item in question; hope it works :

http://www.rightsnet.org.uk/?ACT=39&fid=11&aid=341…id=1

Thanks ROBBO- that’s just what I needed.