ali, i can only speculate, and my expectations are low. : ) i recall in a former incarnation as an IS overpayments AO - pre - JSA, some U/E claimants were referred to 6 months training courses, where they received their IS plus ten quid. we could not recover those payments in the 6 month period, and had to split overpayments into pre- TC and post TC. i recall that nobody in the BA knew what the hell to do about these overpayments, and was involved on a protracted treasure hunt to find the answers to the question. we finally tracked down that the payments were made from a Dept of Employment slush fund (presumably E&T Act) and we weren't to touch them, other than to refer to D.E. who as far as i know, didn't do anything about them, because they didn't have a clue either.
Obviously things have changed since then, notably the D.E no longer exists, and also the oursourcing of debt management etc, with accompanying problems.
I had a quick butchers at the revised overpayment recovery guide, in which a policy re-write seems to have accompanied its own re-write. As you know, CPAG have a JR action against the DWP on their attempts to recover overpayments which have been determined irrecoverable, and a quick read of the manual demonstrates how easily admin. procedures followed by staff with insufficient background knowledge can take over and depart from the law... so i wouldn't be at all surprised if the overpayment of return to work credits isn't actioned 'as if' there is a section 71 right to recover, and any representations are with 'huh?' while the recovery machine grinds on...
making unlawful deductions from benefit because you can is a fairly obvious abuse of power, and JR action isn't widely feasible... feel free to call me an old cynic : )
as far as i know, the DWP printing a statement on a claim form declaration does not make law or create legal powers, but do they know or care...?
it could be that they won't recover now, but will withhold the credit if client re-qualifies for it, until it is recovered by that means..its probably a case of suck it and see, and we'll fight them on the beaches etc...
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