Wednesday, December 02, 2009

Overpayment of recovery

Following a case brought by Child Poverty Action Group (CPAG) the court of appeal has ruled that the secretary of state for work and pensions cannot recover overpayments of social security benefits through the courts where the claimant is not at fault.
In social security law, the test for when the DWP can recover overpayments of relevant benefits is set out in section 71 Social Security Administration Act.. The test in s71 broadly allows for recovery where the claimant has misrepresented or failed to disclose a material fact. Importantly the claimant has a right to appeal to a tribunal against a decision that an overpayment is recoverable under this test. If the overpayment is found to be recoverable under this test there are a number of ways the DWP can recover it including through deductions from current or future benefit payments.The government had written to 65,000 claimants asking them to repay overpaid benefits.

It is not sure whether people who have already paid back overpayments would be able to claim them back. Further information can be found at http://www.cpag.org.uk/welfarerights/overpayment-recovery/

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