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UC (and other benefits) overpayment regs
I’ve just had a look at the overpayment regulations which seem to have emerged for the first time yesterday. As you might expect, they are very bad news indeed.
Here is my understanding from the first read through:
1) All overpayments are recoverable, however caused.(reg 3(1)(a)
2) Although there is a diminishing capital rule, there is no other adjustment for underlying entitlement for UC (only JSA and ESA) (reg 8(1))
3) The default position is that the payee is responsible for paying back the overpayment. However if the claimant has moved and housing costs have been paid to the landlord, these costs can be recovered from the claimant as well as the landlord. (reg 4(5)
4) When benefit has been overpaid to the landlord as a result of a misrepresentation etc that money can only be recovered from the person or people who misrepresented. reg 4(6)
5) Appointees can be asked to pay back any overpayment that the claimant is liable to repay (4(2))
6) Where payment of housing costs has been overpaid to a landlord and the overpayment is not because the claimant has moved or the landlord has misrepresented etc, the overpayment is only recoverable from the claimant, unless the overpayment is more than the rental liability (reg 4 (6/7)
7) regulation 5 is completely incomprehensible
8) Overpayments can be recovered by requiring an employer to make deductions from earnings (part 6). These can be up to 20% of take home pay.(schedule 2)
9) The JSA and ESA rules are changed from April to match this.
10) From April HB overpayments can also be made by deduction from earnings (reg 33)
Have I got this right or wrong or missed anything out? And can anyone explain regulation 5?
Reg 5 simply seems to be saying that there are circumstances where the DWP won’t have to show a valid revision/supersession as a precondition of overpayment recovery.
I think it’ll be used to undo the good work of CSIS/45/1990 which held that for an overpayment over several years every decision over that period must be identified and revised - particularly annoying for the DWP and something which many OP appeals succeeded on
here’s a link to the regs -
How does the ability to recover all overpayments under all circumstances square with the change of circumstances rules that say that you don’t need to report earned income changes, because of the Real Time Wonderment system of linked computers etc?
Quite so. I suppose we will have to wait and see whether the DWP decides to pursue overpayments driven by changes in circumstances they have told claimants they do not need to report.
I think that it is almost certain that they will do.
Reg 5 simply seems to be saying that there are circumstances where the DWP won’t have to show a valid revision/supersession as a precondition of overpayment recovery.
I think it’ll be used to undo the good work of CSIS/45/1990 which held that for an overpayment over several years every decision over that period must be identified and revised - particularly annoying for the DWP and something which many OP appeals succeeded on
Reg 5 could be used to recover what DWP used to call an overprovision, eg where due to official error a claimant is paid twice for the same period. The award under which the payment(s) were made is correct so does not require revision or supersession.