Recovery of Benefit Overpayment via DLA - (one third!)

Hi
Debt Management have just advised me that they have the right to take one third of my client’s DLA to repay a benefit overpayment, (this would be about £111.00pm). His only income is the DLA - partner works.
I was flabbergasted and phoned back to ask what legislation allowed them to do this - they checked with a team leader who said that it was “somewhere” in the social security legislation.
Does anyone know what, if any, legislation they are referring to - there is nothing in CPAG. I don’t even want to mention it to the client yet as they are on DLA because of extreme anxiety.
I’m hoping that someone will confirm that they are talking nonsense but these days anything is possible.
Thanks

You need to think about your approach logically.

Where did the overpayment in question spring from? Which benefit was involved, when was the decision issued to the client, did they, or can they, still challenge the overpayment decision (or even the entitlement decision which gives rise to the overpayment)?

If the decision giving rise to the overpayment is wrong (or the overpayment decision itself) and can be challenged, then that’s the route you should actively pursue.

If for whatever reason this doesn’t appear possible, then has a request to DWP been made to use their discretion not to recover the overpayment? See chapter 55 CPAG 2015/16 sections 1-4 for more on all of the above.

If you cannot challenge the decision and DWP refuse discretionary non-recovery, then, on the facts as stated, you need to look at p.1253-4 for recovery of overpayments from benefits. Essentially, as noted at top of p.1254, an overpayment being recovered from any benefit that isn’t IS, JSA-IB, ESA-IR or PC, does not have any maximum amount of payment for recovery. You can, however, request a lower repayment rate, although this is discretionary.

The Social Security (Payment on Account, Overpayments and Recovery Legislation) Regulations 1988 apply here - I think it’s the case that these stipulate maximum amounts as noted above and if the recovery isn’t being made from these, they do allow a power for DWP to decide whatever rate of recovery they want unfortunately. Don’t have up-to-date copies of Sweet & Maxwell I’m afraid (they’re in the post) so can’t check for sure, but that’s my understanding.

Hi Paul
Thanks for that - the overpayment is sound and there are no grounds to challenge, it’s something the client is happy to pay, but not at that rate.
Thanks for pointing me to the relevant page in CPAG - I was so incandescent I’d lost the ability to read!
Nick