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Overpayment recovery
We have a client who was having £1.00 a week deducted from her Income Support for recovery of an overpayment.
However her benefits went down and client was not sure why, we have spoken to the DWP who said that the rate of recovery was increased and this removed Income Support and tha they are now also taking deductions from her Incapacity Benefit, the total being deducted is therefore now £10.80 per week.
I understood that they would always leave a nominal amount of Income Support. Confusingly they say she is still entitled to Income Support but not payment as entitlement used to reduce overpayment.
It seems clear to me that they have made mistakes, which includes not notifying her of any of the above for a start. Any pointers would be appreciated.
Sounds to me as if they have re-set the recovery rate from a reduction to standard rate. I know the LA in my area reset the overpayment recovery rates every year to the new DWP rates so this may have prompted this change.
I have several clients who we have negotiated lower repayment rates and in some cases they are reset to the normal recovery rate every april uprating and in one (unlucky) guys case it is reset either every 4 months or every 6 months
That case is with central recoveries and having renegotiated it a few times I was told it is automatic and assumes the clients circumstances will alter , or at leasts makes the assumption it has
Sharon and Selby, thanks for your thoughts. We have sent a request to debt management to reschedule repayments.