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Forum Home  →  Discussion  →  Universal credit administration  →  Thread

overpaid UC 70 K reduced to 20k

Diogenes
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welfare benefits, citizens advice, sherwood & newark

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my client has been overpaid UC of £70.000 from 2018 to 2024 , failed to disclose savings over £16.000
client ha had over 16 k throughout the whole period,
we have 2 letters from UC, first one says pay back 70 K please from 2018 to 2024
2nd letter dated day after 1st says , you have been paid 70k too much, but you only have to pay back 20k,
why the 50k reduction in the amount they are clawing back,
as the client was over the £16.000 limit for the whole period I would expect UC to claw back all of the amount overpaid !!!!!

HarlowAC
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Harlow Advice Centre

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I suspect diminution of capital.

See attached

https://www.legislation.gov.uk/uksi/2013/384/part/4/made?view=plain

Diogenes
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thanks harlow, it seems very generous that rle, the client would not have had any UC   but in fact did get paid and keeps 50k of it

Charles
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Accountant, Haffner Hoff Ltd, Manchester

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Not really. If the client hadn’t received the UC initially, they likely wouldn’t have been able to maintain their savings.

Diogenes
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yes I see that, but our advice in 2018 would have been , you are not eligible to UC s you have over 16k
should our advice have been different then in 2018 i fthe client had approached us at that time

Gareth Morgan
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CEO, Ferret, Cardiff

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Diogenes - 16 August 2024 12:22 PM

yes I see that, but our advice in 2018 would have been , you are not eligible to UC s you have over 16k
should our advice have been different then in 2018 i fthe client had approached us at that time

Your advice should have been, as I’m sure it would have been, ‘No UC at the moment, reclaim when your capital falls below 16K and be aware of the deprivation rules’.

Diogenes
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Gareth, yes thanks of course, I am a bit shocked the client was not interviewed under caution, he says he forgot about his investments when he made the UC claim, of course they caught up with him and now he has £20k to pay back, we may appeal on the grounds of eth investments being disregarded capital