You might want to have a look at HB/CTB Circular A16/2005, which stated:
"For the DWP administered benefits, the new rules will be applied from the first intervention on or after 5 December 2005. By intervention, we mean any action, which results in DWP having to intervene in the case (normally a relevant change of circumstance) or any matter which causes the Secretary of State to look at the case on his own initiative. DWP will assume that it was reasonable for the customer to report their circumstances at the time of the intervention and not earlier, unless there is a good reason to suspect otherwise. Recovery of overpayments raised in these cases will not generally be pursued."
It might also be worth pointing out to a tribunal that the DWP took the decision not write to claimants individually advising them of the new rules, relying instead on a rather poorly distributed leaflet entitled 'Getting it Right' which of course your client may, or may not, have seen.
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