My client has lost his payment of reduced earnings allowance and been told he can never have it reinstated. I’m struggling to find an argument to help him get it back, and would appreciate an opinion from anyone with a long enough memory to understand the processes of REA claims.

Sorry about the length of the posting, but it’s a pretty complex case.

My client was in receipt of Industrial Injuries Disablement Benefit and Reduced Earnings Allowance until 2000 when he started a business. He told the local office but not the Industrial Disablement benefit section. After a few months both the IIDP and REA were stopped.

He gave up the business soon afterwards and has been sick ever since. He didn’t have sufficient contributions to claim IB and his partner was working.He says he was told he was entitled to no benefits of his own so never pursued his IIDP/REA.

In 2004 his partner made a claim for income support for both of them, this triggered enquiries about his IIDP/REA. After about a year of investigations, the DWP realised his IIDP should never have stopped and eventually made payment of arrears with compensation for late payment. However, they refused to reinstate the REA, so he contacted us for advice.

The DWP are saying that his claim for REA was brought to an end on 19th September 2000 while he was working because 3 copies of form B134, inviting a renewal claim for REA, were sent to him and he did not respond. No new claim was received since. We’ve put in another claim, arguing that he claims not to have received any of the forms and that he should have been told to apply for REA when he reapplied for IIDP, and both benefits should never have stopped. However, DWP are quoting an absolute time limit of 3 months for making the claim saying as he didn’t claim by 18th December 2000 he can never requalify for REA.

My client has entered an appeal against refusal of REA and wants his benefit reinstated with all the arrears. I can’t see a valid argument to put to the appeal because even if he could persuade a tribunal that he didn’t get the renewal forms (DWP have produced evidence from the case records that these were sent) there is no provision for exceeding the 3 month time limit. Even if there was, he left the claim 4 years before asking for his benefits back.

I did think about trying to argue that there remains an entitlement to REA through the whole period as it should never have stopped. I have established that he could still have had REA while he was working. (The DWP did send out an overpayment notice in 2005 for REA for the period 26th January 2000 to 19th September 2000 on the ground of assessed earnings during this period. We entered a late appeal against this and the overpayment was fully written off when his earning capability was reassessed).

However I think it was normal for REA to be awarded for a limited period and renewed by form B134. Consequently it’s the failure to renew the claim that’s the real problem, rather than the time he was working. Can anyone confirm or challenge this?

Obviously, there a lot of money at stake, so I don’t want to just drop this without checking every avenue. Any thoughts would be appreciated.