“PC are stating that without her SRP that they are unwilling to pay any money to her as they do not want an overpayment of PC to occur”. They’re having a laugh aren’t they? Entitlement to PC is based on a person’s income in any given week. They must process the PC claim and if she fulfils the conditions of entitlement then they must pay her. No ifs, no buts!
Second, their actions are potentially discriminatory to women. A man and a woman in exactly the same situation as your client and both aged 60. He gets PC, she doesn’t.
As an aside, wasn’t there any illegality to her working using a third person’s credentials? If so, then this might muddy the waters somewhat.
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