Hi

A client has received £3,000 IB that was underpaid due to the mismatch of DWP and Revenue NI records - as outlined in Rightsnet news 07 Sept 07 (and others). His original claim was refused 5 years ago.

His IS has stopped and IB is being paid instead. His HB/CTB is now being reassessed.

IB is not in the list of benefits that can be disregarded as capital when a lump sum arrears payment is made. Therefore, I presume it will be treated as belonging to the week it relates to - and that his HB and CTB will be reassessed as if the IB had been paid on time. Presumably leaving him with just £450 of what seemed a windfall!

I had expected that there would have been something put in place in relation to this DWP/Revenue error that would have protected underpaid claimants - but can't find anything. Does anyone know of any provision?

Liz

Liz You are right about his HB/CTB being reassesed, and that an overpayment will have arisen as a result.

But I think you've got to go one step further and consider whether or not that overpayment is recoverable.

In my view the overpayment arose as a result of an official error, (mismatching leading to his being paid the wrong benefit). Your client and other relevant people (his represntatives or people to whom payment was made) did not cause or contribute to the error. Nor could they have reasonably have been expected to have realised that he had been overpaid at the time.

For these reasons I do not feel that the OP is recoverable under Reg 100 (2) of the HB regulations or 81 (2) HB (SPC) Regulations.

It really ought to be plain sailing....

Paul.

Thanks Paul - wish I'd thought of that!

Liz