I have just had a client in who has a Housing and Council Tax Benefit appeal that we are waiting for the appeal submission on. They have told me that they have been told that the 7 year rule means that the appeal must be soon because the overpayment relates to the year 2000. I have pushed them further on this and they could not give me any more information.

Does anyone know if there is a 7 year rule, and if so, what it is and where I can find information on it?

Thanks
Roni.

I suspect this relates to the Limitations Act.

This places a six-year limit on chasing overpayments where the creditor fails to take action. However, if during that period, the creditor (presumably the LA?) has continued to pursue the monies, the 6-year period starts over again.

So, unless the LA has done absolutely nothing for 6 years, the Limitations Act will not assist your client.

Regards

Hi,
Their appeal was made in December 2003. I don't think it is the Limitations Act because the Local Authority could just recover the overpaymeent from their existing Housing Benefit claim.

The overpayment was for the period 27th March 2000 to 26th January 2003.

I am looking for something to do with Appeals or maybe having to have passed the appeal submission to the Tribunals Service or maybe to do with when the overpaid amount relates to.

It may be that nothing exists in which case I can inform the clients of this. However, they did seem really definite.

Thanks
Roni.

In which case, there is nothing that springs to mind at all about a "7 year limit". Based on the info given, I don't see any argument that is likely to enable your client to win his appeal on a legal, or procedural, technicality.

Delays in passing appeals to the Tribunal Service could, theoretically, fall foul of Article 6 of the HRA (right to fair hearing etc). However, there have been older cases than your clients where that particular HRA argument has not been successful. Also, it will depend on the reason(s) for the delay.

In my experience, an appeal that has been outstanding for 3 years tends to occur only where one, or a combination, of the following factors occurs:

1) the appeal is overlooked by the LA.

2) the LA's provision of resources to deal with appeals is wholly inadequate (normally, insufficient staff).

3) the clmt's conduct - e.g. deliberate delaying tactics (not as unusual as might be thought).

4) it is an exceptionally difficult and/or complex case.

Just to clarify; the above if only to offer an explanation - not to justify such a lengthy delay.

Regards

Tue 27-Mar-07 02:52 PM by Paul Stagg

I have no idea what the council is talking about in relation to a "seven year rule".

The law of limitation has only very limited relevance in relation to recovery of overpayments. In short:

- Limitation is a defence to a court action. Thus a council may recover overpayments by way of deduction from benefits no matter when the decision that the overpayment was recoverable was made.

- Section 9 of the Limitation Act 1980 provides that where sums are recoverable under statute (as overpayments of HB are, pursuant to section 75 of the SSAA) then the limitation period is 6 years. It is not correct that time can be started again by making a formal demand - that applies only to actions for a debt.

- Since HB overpayments are not recoverable without a decision being made, time does not start to run until a decision is made. Thus if an overpayment is made in the year 2000 but a decision is not made until 2006, court proceedings for recovery of the overpayment could be launched at any time until 2002.

There is no excuse for a claimant to be waiting for three years for their appeal to be heard in ANY case, no matter how complex. A threat to apply for judicial review should make the LA wake up and put the case to the Appeals Service for hearing.




DISCLAIMER: This is intended as a contribution to the subject-matter under discussion and is not to be relied upon as legal advice. Anyone with a similar or identical problem should consult an expert welfare rights adviser or a solicitor with expertise in welfare rights law.