I'm not aware of any limits for AdPens, although the whole public interest / welfare of the claimant etc should be considered. I have heard of AdPens being offered (and accepted) on large overpayments (£6,000 from memory). One major difference between AdPens and Cautions is that the suspect must admit the offence in IUC. If that has not happened, and the evidence is sufficient, then either an AdPen or Prosecution may be considered. The ability to repay the AdPen is often a factor as well.
I have never heard of a suspect approaching the DWP or LA to request one or other sanction, and I would query why someone was asking for an AdPen rather than another sanction. The AdPen is normally higher than any fine imposed by courts, although no criminal record is created by accepting one (which might explain your question).
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